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Republic of Mauritius MAURITIUS NATIONAL EXPORT STRATEGY INNOVATION CROSS-SECTOR 2017-2021
Transcript

Republic of Mauritius

MAURITIUSNATIONAL EXPORT STRATEGYINNOVATION CROSS-SECTOR 2017-2021

The International Trade Centre ( ITC )

Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland

Postal address: ITC Palais des Nations 1211 Geneva 10, Switzerland

Telephone: +41 - 22 730 0111

Fax: +41 - 22 733 4439

E-mail: itcreg @ intracen.org

Internet: http : / / www.intracen.org

Layout: Jesús Alés – www.sputnix.es

This National Export Strategy ( NES ) is an official document of the Government of Mauritius. The NES was developed on the basis of the process, methodology and technical assistance of the International Trade Centre ( ITC ) within the framework of its Trade Development Strategy programme.

UNCTAD provides intellectual leadership and serves as a source of expertise on science, technology and innovation ( STI ) policies for de-velopment. UNCTAD’s work in STI policy for development focuses on supporting the integration of STI in national development strategies and building-up STI policy-making capacity in developing countries.

ITC is the joint agency of the World Trade Organization and the United Nations. As part of the ITC mandate of fostering sustainable development through increased trade opportunities, the Export Strategy section offers a suite of trade-related strategy solutions to maximize the development payoffs from trade. ITC-facilitated trade development strategies and road maps are ori-ented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sec-tors, allowing policymakers to choose their preferred level of engagement.

The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.

©shutterstock

Republic of Mauritius

MAURITIUS NATIONAL EXPORT STRATEGY INNOVATION CROSS-SECTOR 2017-2021

Photo: © shutterstock

INTERNATIONAL TRADE CENTRE III

ACKNOWLEDGEMENTS

Technical facilitation, guidance and support for the process were provided by the project team of the International Trade Centre ( ITC ).

Name Function Organization

Ms. Marion Jansen Chief, Office of the Chief Economist and Export Strategy ITC

Mr. Anton Said Head, Trade Strategy Development Programme ITC

Mr. Darius Kurek Project manager ITC

Mr. Rahul Bhatnagar Project lead technical adviser ITC

Ms. Marta Perez Cuso Economic affairs officer UNCTAD

Ms. Claude Manguila Project technical adviser ITC

Mr. Reg Ponniah Technical editor ITC

Name Organization

Mr. Osman Badat Baines Trust and corporate

Mr. Philippe Deustch Bank

Mrs. Rubina Global Finance

Mrs. M Jhugroo Mauritius Bankers Association

Mr. Ashween Jankee Mauritius Bankers Association

Mr. Matthieu Mandeng Standard Chartered Bank

Dr. Yusuf Ismael Team Leader

Mr. H. Mundil BOI

Mr. Gamal Ballam Financial Services Commission

Mr. Prakash Seeparsun Global Wealth Management Solutions

Mrs. Vaghee-Rajiah Human Resource Development Council

Mr. Dhanun Ujoodha Kross Border Trust Services

Mr. R. Jaddoo Mauritius Chamber of Commerce and Industry

Mr. J. Kathapermal Ministry Of Finance

Mr. A. Bhuglah Ministry of Foreign affairs, regional Integration and international trade

Mr. R.Sungkur Ministry Of Industry & Commerce

Mr. Hossenbux MRA Customs

Mrs. Shalini Gokhool Stock Exchange of Mauritius

Mr. Rajcoomar Sungkur Ministry of Industry & Commerce

The National Export Strategy ( NES ) was developed under the aegis of the Government of the Republic of Mauritius, the political leadership of the Ministry of Industry, Commerce and Consumer Protection ( MICCP ) and with the operational support of the Enterprise Mauritius ( EM ). This document benefited particularly from the inputs and guidance provided by the members of the sector team.

INTERNATIONAL TRADE CENTREIV

ACRONYMS

AFMCE Association des Femmes Mauriciennes

Chefs d’Entreprises

B2B Business-to-Business

BIT Bilateral Investment Treaty

BOI Board of Investment

CIDP Centre International de Développement

Pharmaceutique

CIRAD Centre de Coopération Internationale

en Recherche Agronomique

pour le Développement

CoA Commission of Agriculture

COMESA Common Market for Eastern

and Southern Africa

EEZ Exclusive Economic Zone

EM Enterprise Mauritius

EPZ Export Processing Zone

EU European Union

FAD Fishing Aggregating Device

FDI Foreign Direct Investment

FRTU Fisheries Research and Training Unit

FTA Free Trade Agreement

GDP Gross Domestic Product

GFCF Gross Fixed Capital Formation

HACCP Hazard Analysis and Critical Control Point

HS Harmonized System

ICT Information and Communications Technology

iEPA interim Economic Partnership Agreement

IIA International Investment Agreement

IMF International Monetary Fund

IP Intellectual Property

ITC International Trade Centre

MCCI Mauritius Chamber of Commerce and Industry

MEXA Mauritius Export Association

MFN Most Favoured Nation

MoFARIIT Ministry of Foreign Affairs, Regional Integration

and International Trade

MoOE Ministry of Ocean Economy, Marine Resources,

Fisheries, Shipping and Outer Island

MSB Mauritius Standards Bureau

MSMEs Micro, Small and Medium-sized Enterprises

NES National Export Strategy

NWEC National Women Entrepreneur Council

ODA Official Development Assistance

OECD Organisation for Economic Co-operation

and Development

PoA Plan of Action

QMS Quality Management System

R&D Research and Development

ROFCF Rodrigues Offshore Fishermen Cooperative

Federation

RPFO Rodrigues Professional Fishermen Organization

RRA Rodrigues Regional Assembly

SADC Southern African Development Community

SME Small and Medium-sized Enterprise

SMEDA Small and Medium Enterprises Development

Authority

TPP Trans-Pacific Partnership

TISI Trade and Investment Support Institution

TSN Trade Support Network

TVET Technical and Vocational Education and Training

UNCTAD United Nations Conference on Trade

and Development

UNDP United Nations Development Programme

WTO World Trade Organization

INTERNATIONAL TRADE CENTRE V

ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III

ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV

INTRODUCTION 1

WHERE WE ARE NOW 3

MAURITIUS INNOVATION SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

FUNCTIONS OF MAURITIUS INNOVATION SYSTEM . . . . . . . . . . . . . . . . . . . 5

INNOVATION SUPPORT NETWORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

ANALYSIS OF THE INNOVATION SUPPORT NETWORK . . . . . . . . . . . . . . . . 15

INNOVATION FRAMEWORK DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . 15

CONSTRAINTS TO INNOVATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

THE WAY FORWARD 19

VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

STRATEGIC ORIENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

PLAN OF ACTION 21

ANNEX 1. INNOVATION AND COMMERCIALIZATION SCHEMES RELEVANT TO FIRMS, MAURITIUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

REFERENCES 31

CONTENTS

INTERNATIONAL TRADE CENTREVI

Photo: (cc) pixabay

INTERNATIONAL TRADE CENTRE VII

LIST OF FIGURES

Figure 1 : A national innovation system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Figure 2 : Mauritius national innovation system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Figure 3 : Annual productivity growth in Mauritius, 2003-2013 . . . . . . . . . . . . . . . . . . . . . . 4

Figure 4 : Mauritius -Global Innovation Index, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Figure 5 : Gross expenditure in R&D by field, Mauritius, 2012 . . . . . . . . . . . . . . . . . . . . . . 6

Figure 6 : Strategic orientation for innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

TABLES

Table 1 : Activities of an innovation system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Table 2 : Key R&D indicators, Mauritius and comparators, 2012 or latest available year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 3 : Policy support network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Table 4 : Knowledge creation and dissemination network . . . . . . . . . . . . . . . . . . . . . . . . . 12

Table 5 : Innovation support network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table 6 : Business network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

BOXES

Box 1 : Summary of constraints to innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Photo: (cc) pixabay

1INTRODUCTION

INTRODUCTION

Technology and innovation represent a major driver for sustaining economic growth and national export de-velopment. Economic growth is a direct function of the availability of physical capital, human capital ( skills and education ), labour ( working population ) and technology. Innovation is essential for improving productivity in ag-riculture, manufacturing and services ; increasing value added locally ; and diversifying production, towards more knowledge intensive activities.

Innovation is the commercial introduction of a product ( good or service ) or process and/or the adoption of a marketing or organisational method that is new to a country or a firm, whether or not these are new to the world. That is, innovation also occurs when a firm in-troduces a new product/process to the country for the first time and when other firms imitate this pioneering firm. Innovation may be technological but also non-technological ( organisational, managerial or institution-al ). Knowledge and learning are fundamental. Learning may be based on formal training and R&D or on informal

learning, trial and error, use and experience. In develop-ing countries, incremental innovations ( the adoption, dif-fusion and upgrading of technologies that already exist ), rather than disruptive innovations, are key to technologi-cal progress.

Traditionally, innovation was thought to be driven either by basic science research ( science push ) or by market needs ( market pull ). Today there is a shared understand-ing that innovation takes places within ecosystems where distinct institutions ( including firms, farmers, education and research institutions, public administration, banking system, intellectual property rights, quality system, broad-er framework conditions ) and their relations, contribute to developing and diffusing technologies and supporting in-novation. In other words, two dimensions are important for innovation : first, the capabilities of the different insti-tutions involved in innovation and, second, the ability of these institutions to interact and collaborate among them. Figure 1 represents a generic national innovation system, and its main institutions and linkages.

Figure 1 : A national innovation system

Source : ( Kuhlmann and Arnold, 2001 )

2 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

Government and market both play a crucial role in foster-ing innovation :

� Firms are at the centre of innovation. They innovate in response to incentives ( i.e. competition ) and when they have the necessary capacities and framework conditions permit it.

� A supportive state is needed to correct market failures ( technology markets are imperfect and social returns are higher than private ones ) and systemic failures ( that is, to ensure appropriate coordination among different STI institutions ). However, state action can-not replace firm activities.

Exporting firms usually are under greater pressure to in-novate to remain competitive at the international level. At the same time, through exposure to other markets and firms, exporters enjoy more diverse opportunities to learn and adopt technologies.

A national innovation system carries 10 types of activities ( Edquist, 2005 ) –see Table 1.

Table 1 : Activities of an innovation system

Knowledge inputs to the innovation process

1. Provision of R&D and creation of new knowledge2. Building competences in the labour force to be used for innovation and R&D activities ( education

and training, provision of human capital, production and reproduction of skills, individual learning )

Generating demand

3. Formation of new product markets4. Articulation of quality requirements

Provision of constituents ( organisations & institutions1 )

5. Creating/modifying organisations to promote the development of new fields of innovation ( e.g. enhancing entrepreneurship to create new firms and intrapreneurship to diversify existing firms, creating new research organisations, policy agencies, etc. )

6. Networking through markets and other mechanisms, including interactive learning from different organisations

7. Creating and changing institutions ( e.g. IPR laws, tax laws, environment and safety regulations, R&D investment routines ) that influence innovation organisations and innovation processes by providing incentives or obstacles to innovation

Support services for innovating firms

8. Incubating activities ( e.g. access to facilities, administrative support ) for new innovative efforts 9. Financing innovation activities10. Providing services for innovation processes ( technology transfer, commercial information, legal

advice )

Source : Based on ( Edquist, 2005 ).

3WHERE WE ARE NOW

WHERE WE ARE NOW

MAURITIUS INNOVATION SYSTEMInnovation takes place within ecosystems where distinct institutions ( including firms, farmers, education and re-search institutions, public administration, banking sys-tem, intellectual property rights, quality system, broader

framework conditions ) and their relations, contribute to developing and diffusing technologies and supporting innovation. Figure 2 provides an approximation of the na-tional innovation system of Mauritius, its main institutions and linkages.

Figure 2 : Mauritius national innovation system

4 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

Figure 3 : Annual productivity growth in Mauritius, 2003-2013

Source: Statistics Mauritius, 2013

Economic growth in Mauritius since 2003 has been driven in large part by capital accumulation rather than labour growth. Multifactor productivity, a proxy for inno-vation efforts, has been declining and by 2013 showed no progress.

To sustain long-term economic growth, Mauritius requires a shift in its growth strategy from one based on the accu-mulation of inputs to one based on improved productivity. Mauritius currently does not have a national innovation strategy to enable a growth strategy anchored on pro-ductivity improvement.

An increasingly competitive environment both at the in-ternational ( greater exposure to international competition in two traditionally exporting sectors - textiles and sugar ) and national ( enhanced domestic market competition with the liberalization of previously protected sectors ) level are strong incentives to innovate. Yet, a number of subsi-dies ( e.g. in electricity and water tariffs ) while protecting valuable employment may also be dis-incentivising inno-vation or slowing down the readjustment process towards more dynamic sectors of the economy ( World Bank 2015 ).

There is limited access to new technologies and produc-tive capital that can generate high knowledge spillovers. The allocation of FDI to productive sectors has shrunk ( see macro diagnostic section ). The most relevant sec-tor has been financial and insurance activities which has accounted for 27 % of total FDI and has the potential to establish Mauritius as a regional financial hub and to

facilitate innovation activities. Mauritius small domestic market is a constraint to attract more FDI relevant for tech-nology transfer ( World Bank 2015 ). In terms of trade, there has been a reduction of imports of capital and technology goods ( see macro diagnostic section ), and exports are largely concentrated in natural resource-based manufac-turing and low technology manufactures.

Mauritius has a good business environment and the eco-nomic and political institutional settings provide a favour-able context to innovation. However, the development of an innovative export sector faces number of constraints : firms face critical challenges in terms of shortage of hu-man capital in STI ; low investments in R&D, particularly from the private sector ; weak university-industry linkages ; difficulties to access finance in general, and for innovation activities in particular ; weak capabilities to export among SMEs ; in some sectors, weak sectoral organization and interfirm linkages ; weak international –domestic business linkages with limited technological spillovers.

Global indicators seem to show a middling performance in innovation. For example, The Global Innovation Index places Mauritius in position 49 out of 141. However, such performance is mostly attributable to good ratings in the general overall institutional environment. The same Index points to important weaknesses in the availability of skilled resources tertiary and higher education, in the capacity to generate knowledge and use it with impact. As a result the level of sophistication of firms is low.

5WHERE WE ARE NOW

Figure 4 : Mauritius -Global Innovation Index, 2015

FUNCTIONS OF MAURITIUS INNOVATION SYSTEM

PROVISION OF R&D AND CREATION OF NEW KNOWLEDGE

Mauritius has a small base of R&D, even relatively to the size of its economy. R&D data for Mauritius is based on official budget allocations ( not on actual expenditure ) to R&D agencies, and does not include R&D expenditure by the private sector. Therefore, it is likely to be under-estimated and thus difficult to compare with other coun-tries. Yet, the level of human and financial R&D resources seem to be lower than other countries at similar income levels such as Costa Rica or other high-income level small island economies such as Cyprus or Singapore ( Table 2 ). Moreover, only 36 per cent of R&D personnel

are researchers, the other 64 per cent are technicians. In addition, women represent less than 30 per cent of the R&D workforce ( Table 2 ).

Public investment in R&D is 0.18 of GDP. If we assume that the private sector finances 50 per cent of R&D expendi-ture1, the total gross expenditure on R&D ( GERD ) of 0.36 of GDP would still be very low compared with Costa Rica, Cyprus or Singapore ( Table 2 ).

Most of the budgeted R&D activities are in the traditional agriculture sector ( Figure 5 ), largely on sugar, and there are little R&D activities related to the new priority sectors, such as ICT/BPO ( only 5 % of R&D is spent on engineer-ing and technology ).

1. This is only an assumption. Private sector participation in R&D varies largely among countries. However, in general, most of R&D investment in developing countries is done by the public sector.

Table 2 : Key R&D indicators, Mauritius and comparators, 2012 or latest available year

Botswana Costa Rica Cyprus Mauritius Namibia Singapore

GNI per capita, Atlas method ( current US $ ) 7,240 10,120 26,370 9,630 5,630 55,150

Population, million 2.2 4.7 1.1 1.2 2.4 5.4

Total R&D personnel per million inhabitants ( FTE ) 305 .. 1,099 498 .. 7,446

Total R&D personnel ( FTE ) - % Female 38.2 .. 41.1 29.5 .. ..

Researchers as a % of total R&D personnel ( FTE ) 54 .. 70.7 36.4 .. 86.5

GERD in 000 PPP$ ( in constant prices - 2005 ) 67,094 253,826 95,677 33,748 23,193 7,152,933

GERD as a percentage of GDP 0.25 0.47 0.43 0.18 0.14 2

GERD financed by business enterprise % 5.8 18.8 10.9 0.3 19.8 53.4

Source : UIS.Stat data, extracted on 28 Jan 2016 and World Development Indicators, last updated 22 Dec 2015

Note : Data for GNI per capita and Population is for 2014. Other data is for 2012 except for Costa Rica ( 2011 ) and Namibia ( 2010 ). R&D data for Mauritius is based on official budget allocations, and thus may be underestimated.

6 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

Figure 5 : Gross expenditure in R&D by field, Mauritius, 2012

BUILDING COMPETENCIES IN THE LABOUR FORCE FOR INNOVATION AND R&D ACTIVITIES

Mauritius faces a number of labour shortages and skill mismatches for innovation and R&D activities.

There are shortages across a number of high-skilled fields. Some of the labour force shortages identified by stakeholders include insufficient number of IT graduates, and of engineers with applied skills. For certain special-ized fields requiring a small number of labour, for instance engineers in medical devices, companies recruit from abroad. Recruiting from abroad is relatively cheap, par-ticularly in engineering, where local graduates expect to receive high salaries.

Stakeholders have also identified the absence of spe-cialists in specific areas relevant for innovation, such as those areas related to technology transfer and intellec-tual property. For instance, there are no patent attorneys in the country.

The Government of Mauritius has made efforts to expand tertiary education, for instance by expanding the number of universities. However, there is the perception that fur-ther efforts are required to enhance the quality of educa-tion to develop the type of skills relevant to industry needs.

Stakeholders also reported that traditional business sec-tors have limited appetite to innovate. Owners of small firms are unlikely to adopt new technologies, such as ICTs, to improve the management of their businesses, as they fear increasing transparency of their business ac-counts and losing control of their business. It was also reported that many traditional businesses in the jewellery and textile sectors, despite international competition, do

not feel the pressure to innovate and therefore are unlikely to introduce new products or processes. What is more problematic is the fact that there is a lack of a group of dynamic and high-growth innovators large enough to pro-vide traction for economic transformation .

There is a broad consensus that skills development is a key issue for the development of Mauritius’ exports. This area is discussed in further detail under the skills devel-opment cross-sector function.

FORMATION OF NEW PRODUCT MARKETS

The state has not played a significant role in generating demand for innovation.

The overall demand for innovation in Mauritius is weak. The economy has enjoyed some degree of sheltering from global competition through a combination of trade preferences and development assistance2. As an exam-ple, preferential trade agreements enabled the develop-ment of the textiles sector. In the last decade, as labour cost increased and trade preferences waned, policies that support low-skills labour supply have enabled the survival of the textiles sector. The financial sector, relies on double taxation treaties and agreements, and is cur-rently a mature sector based on passive, low-value added account management. These types of protective policies, while they enabled the development of economic sectors, have limited the incentives for firms to innovate and there is still a limited perception among economic actors on the urgency to innovate.

2. See National Export Strategy : Strategic Trade Development Roadmap ( STDR ) - Mauritius

7WHERE WE ARE NOW

Sustainability concerns have long been present in Mauritius in the fisheries sector. Fishing conditions and requirements introduced by the Government and devel-opmental support ( for example, the National Strategy for Regional Fish Trade and policies to promote the aqua-culture sector ) has supported the demand for innovation and the development of new markets.

The ICT/BPO sector has seen a major transformation in the last decade. The Government played a major role in its development with the set-up of the Cyber City of Ebene. Mauritius is currently present in the low- and mid-value segments of ICT and there are opportunities for the Government to support the formation of new higher-value added markets.

Limited consideration to the promotion of innovation is given in public procurement. For instance, in the area of medical equipment, public procurement favours in-ternational brand names over locally produced equip-ment meeting international quality standards. The E-Government Strategy 2013–2017 does not include plans to involve and support the local ICT sector in the development of e-government services.

ARTICULATION OF QUALITY REQUIREMENTS

The articulation of quality requirements for promoting in-novation is not currently exploited in Mauritius. In the first place, there are important deficiencies and inefficiencies in the quality management system ( QMS ) infrastructure, which are particularly relevant for the development of the fisheries and agro-industry sector. For example, testing facilities are not readily available at testing and accredita-tion institutions, and institutions across a variety of func-tional duties ( e.g. policy setting and monitoring ) are not well coordinated ( see macro diagnostic section ).

CREATING AND MODIFYING ORGANIZATIONS

The Ministry of Technology, Communication and Innovation ( MTCI ) is the policy agency responsible for promoting innovation. Within the ministry, technology and communication issues have traditionally played a key role, and the visibility of innovation policy has been more limited. The High-level Steering Committee on Innovation under the Prime Minister’s Office advises the Prime Minister directly on innovation policy. Its members include MCCI, BOI, MoICT, and some operators. In prac-tice, the Mauritius Research Council ( under the MTCI ) acts as a central body to advise the Government on sci-ence and technology issues. The Mauritius Research Council is responsible for promoting and coordinating government investment in research. Currently, there is no

agency promoting innovation. As there is an increasing recognition on the need to support innovation, the MRC has started to support innovation efforts. There are plans to modify MRC into a research and innovation agency. Successfully transforming MRC into a research and in-novation agency will require, among others, ensuring that the new agency develops strong competencies and links to work with the private sector, as supporting research is a different activity to supporting innovation and requires different approaches and skills. Currently, MRC linkages with the private sector are largely informal and dependent on the networks of contacts of its senior staff.

Regarding research policy, the Ministry of Education, Human Resources, Tertiary Education and Scientific Research sets the policy for education and research. However, MRC ( under the MTCI ) is responsible for the coordination and implementation of public research programmes.

Overall, there is limited information and therefore confu-sion among stakeholders on what the roles and respon-sibilities are of the different research and innovation policy setting institutions, their memberships and the coordina-tion mechanisms available. A clear division of labour and more transparency would enhance the design, coordina-tion and implementation of research and innovation policy.

Adjusting the institutional framework is a complex task as the perspectives and interests of various actors differ. To support the institutional change process, Mauritius could work with international agencies with expertise in the governance of science, technology and innova-tion systems ( UNCTAD, World Bank, OECD, UNESCO, UNU Merit ). These agencies can provide international and independent advice on different options for strength-ening the research and innovation policy setting institu-tions. UNCTAD, for example, provides advice to countries through the form of independent external reviews as well as training courses to policy makers in this area. Mauritius could benefit from interacting with other international in-novation agencies to learn from the positive and negative experiences of other countries that have tried to transform research organisations into innovation agencies.

NETWORKING

From a systemic perspective, the linkages between ac-tors and organisations of the system are as important as the capabilities of the actors.

In Mauritius, there are efforts to promote sector linkages ( for example in the ICT sector, with the professional organ-isations and through the cyber city ), yet interfirm linkages and collaboration tend to be weak and are preventing coordination and mutual learning. Lack of trust is often cited as a major reason behind the lack of collaboration.

8 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries and associated institutions in specific fields that compete but also cooperate ( Porter, 1998 ). This geographic co-location of firms can create positive eco-nomic externalities, referred to as agglomeration econo-mies, and enable firms, particularly SMEs to improve their ability to compete and survive ( UNCTAD, 2015 ).

Mauritius has been promoting an ICT cluster since 2001 when Business Parks of Mauritius Ltd ( BPML ) was cre-ated as a government-owned private company to provide state-of-the-art facilities for advanced software promotion and IT-enabled services3. Today, the Cyber City at Ebene comprises some 40 hi-tech buildings. The ICT sector con-tributes 7 % of Mauritius’ GDP and creates high-end em-ployment for over 20,000 people. There is an initiative to develop a new business park at Rose Belle, near the air-port in the south. ICT-related activities, as well as hi-tech manufacturing, light engineering and pharma, are being promoted aggressively in this park.

The development of a life sciences/biotechnology cluster could offer great opportunities for the development of a number of sectors. A number of actors, including from the private sector and academia, is highly interested in de-veloping such a cluster. So far, public support has been limited in this area.

Clusters may have formed spontaneously over time or, as in the case of Mauritius, may be planned or constructed through deliberate policy action by policymakers. They can, but do not always, stimulate knowledge flows, up-grading and innovation among firms located in them ( UNCTAD, 2015 ). The design and support of clusters that effectively stimulate upgrading and innovation requires careful thought. Mauritius could benefit from collaborat-ing with successful clusters abroad and with international experts or organisations ( e.g. International Association of Science Parks and Areas of Innovation ) to learn from their experiences in the design and management of clusters.

Academia-industry linkages are weak too. Higher educa-tion institutions have generally focused their mission on education and training, and, to a lesser extent, on knowl-edge creation or research. Collaboration with industry has not been a primary mission of the main universities of Mauritius, and as a result of this limited collaboration, universities are unlikely to be considered by firms as po-tential partner institutions to support their innovation ac-tivities. Research institutes outside universities ( such as the Centre for Biomedical and Biomaterials Research ( CBBR ), the Mauritius Sugar Industry Research Institute ( MSIRI ) or the Food and Agricultural Research and Extension Institute ( FAREI ) ) have closer relations with

3. http ://www.theneweconomy.com/business/mauritius-cyber-city-attracts-business-from-across-the-globe

industry. The impact of the public research institutions is restricted by their level of financial resources. Developing academia-industry linkages will be crucial for Mauritius to become a knowledge-driven economy. This requires de-cisive and sustained support from high-level policy mak-ers, universities and industry.

Linkages between subsidiaries of multinational firms and SMEs are also generally weak. There is limited informa-tion on these linkages.

Although multiple points of interaction between firms and public agencies exist through myriad business and pro-fessional associations and consultative processes, non-public actors feel that the public sector has difficulties to respond adequately to private sector needs in the area of research and innovation.

CREATING AND CHANGING INSTITUTIONS : INTELLECTUAL PROPERTY

Mauritius has a limited IPR infrastructure. Mauritius has not ratified or joined the main international intellectual property agreements, including :

� The Madrid System for the international registration of trademarks Convention

� The Lisbon System for the international Registration of Appellations of Origin

� The Patent Cooperation Treaty � The Hague System for the International Registration

of Industrial Designs.

As industrial property registered in Mauritius is not rec-ognised outside the country, brand and IP protection for Mauritius is weak. Provisions to ratify/join these are pend-ing political decision.

The Industrial Property Office ( IPO ), under the Ministry of Foreign Affairs ( MoFARIIT ), has limited means both in terms of funding and human resources to exploit IP. For instance, it has limited resources to support the domestic registration of patents.

The promotion of intellectual property in the country is carried out by the IPO and by the MRC, ( which has a small IP information office ). There is some limited sup-port, mainly information, for registering intellectual prop-erty ( domestically and abroad ) offered by IPO and MRC. There is no support for the commercialization of intel-lectual property or for the use of the capacity offered by patents as sources of information for innovation and tech-nological development. To build capabilities in the area of IP, Mauritius has developed strong cooperation with the World Intellectual Property Organization ( WIPO ). The country could also benefit from collaborating with other

9WHERE WE ARE NOW

organizations, such as UNCTAD, that have expertise in other dimensions of IP, in particular regarding the com-mercialization of IP and the maximization of IP for inno-vation activities.

The Board of Investment ( BOI ) is focusing on attracting investment to develop innovation capabilities and high value added activities in the country. An example is the creation of the Smart Cities which provides for a condu-cive high tech environment for companies engaged in innovation and R&D activities. There is potential to cou-ple actions to attract FDI with efforts to develop skills and high-value added activities, by focusing actions in attract-ing quality investments in activities that complement do-mestic capabilities and assets to develop priority sectors, such as in the medical services, ICTs, or fisheries.

INCUBATING ACTIVITIES

There is limited support for promoting incubation activi-ties in Mauritius. La Plage Start-up Incubator Project is a new public-private sector partnership being implemented by MRC. Other proposals for developing business incu-bation activities are being made as part of proposals for smart cities. Higher education institutions do not provide business incubation services.

A major concern is to ensure a coherent approach to sup-port business incubation activities to avoid duplication of efforts. A number of good practices should be taken into account when developing incubators ( UNCTAD, 2011 ) :

� Attention to strategic sectors or those with potential im-pact, regional needs and micro enterprises and SMEs

� Alignment with industrial development policies and other spheres of public policy

� Alignment with STI development policies � Concentration of resources and convergence of instru-

ments � Gradual progress, contemplating the available critical

mass and market opportunities � Covering the pre-incubation-acceleration spectrum � Participation in networks � Systematic evaluation mechanisms

Collaboration at the international level with other incubator programmes or agencies supporting incubators and best practice in incubators could be very useful for Mauritius. International collaboration provides important opportuni-ties to learn about what works and what does not work, to connect with resource partners and experts, and to benefit from independent advice.

Photo: © shutterstock

10 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

FINANCING INNOVATION

Finance plays a fundamental role in technological change and innovation. Innovation often involves significant capi-tal investments and is an uncertain, risky undertaking, which makes it more difficult to mobilize the necessary re-sources ( UNCTAD, 2013 ). For enterprises, lack of finance is often a major obstacle to innovation, internationally and in Mauritius.

Public support for financing the innovation activities of firms in Mauritius is very limited. There are no tax incen-tives for R&D activities in firms. There are no schemes, such as competitive matching grants, that financially sup-port innovation activities in firms. Mauritius has only re-cently started to financially support R&D in private firms through the Collaborative Research and Innovation Grant Scheme ( CRIGS ) administered by the MRC. Mauritius Research Council currently has 14 different funding schemes for research and innovation activities ( see com-munication by ( Suddhoo, 2016 ) ). Annex lists the seven schemes that support innovation activities in firms. Most of these schemes are very recent and too small to help transform the Mauritian economy into a knowledge-based economy.

Providing public support for financing innovation is a com-plex endeavour which requires careful considerations and expertise. Some good practices in financing innovation and R&D emanating from international practice ( UNCTAD, 2011 ) are :

� Attention to strategic sectors or those with potential im-pact, regional needs and micro enterprises and SMEs

� Alignment with industrial development policies and other spheres of public policy

� Promotion of research-industry collaboration � Competitive funds � Collaboration in advanced training � Transparent evaluation mechanisms and accredited

evaluators � Systematic evaluation mechanisms

Collaboration at the international level with experts in fi-nancing innovation and with agencies that finance inno-vation would be very useful for Mauritius. International collaboration provides important opportunities to learn about different practices in the design of financial instru-ments for innovation and of the necessary structures and processes for managing such instruments. Monitoring and measuring the impact of these instruments are cru-cial to deliver results. External independent advice in this area and the participation of external evaluators in as-sessing R&D and innovation proposals would also be very valuable.

PROVIDING SERVICES FOR INNOVATION : TECHNOLOGY SERVICES

Some medium-and large-sized companies within the lo-cal manufacturing and export manufacturing sector have invested in the latest technology to improve their efficiency and competitiveness. They are today modern and high-tech manufacturing enterprises. While more advance technological services are not available in Mauritius, these leading innovative companies do not seem to have major problems ( except cost and time ) to access these tech-nologies and services from abroad.

On the other hand, smaller firms in traditional sectors such as textiles, jewellery and farmers/ agro producers are of-ten not aware of technology advancements and have dif-ficulties to access technology services. Public support for the provision of technology services has been une-ven ( for example, support to develop aquaculture skills among small-scale fishermen ). There is a limited range of intermediary organizations that support technology transfer in Mauritius, with unclear mandates, resources and knowledge to support technology transfer effectively in a sustained manner. The main organizations support-ing technology transfer in Mauritius include the Mauritius Sugar Industry Research Institute ( MSIRI ), the Food and Agricultural Research and Extension Institute ( FAREI ), and the MRC ( which provides some general support to technology transfer ).

Finally, as mentioned previously, there are important de-ficiencies and inefficiencies in the quality management system ( QMS ) infrastructure, which are particularly rel-evant for the development of the fisheries and agro-in-dustry sector.

INNOVATION SUPPORT NETWORKSThis section will discuss the capabilities of key organiza-tions to promote innovation. Tables 1 to 4 identify and assess the main organizations that support innovation in Mauritius. The assessment is made along five dimen-sions : ( 1 ) coordination – ability to coordinate action for supporting innovation ; ( 2 ) human capital – the capabil-ities of its human capital to promote innovation ; ( 3 ) fi-nancial resources – the financial resources it counts to promote/ support innovation ; ( 4 ) Advocacy – its capa-bilities to argue for the importance of innovation and ( 5 ) Communication – its ability to communicate the impor-tance of innovation. Each institution will be ranked ( high-1 , medium-2, low-3 ) by stakeholders in the context of delivering services related to innovation.

11WHERE WE ARE NOW

POLICY SUPPORT NETWORK

This network ( Table 3 ) includes key public ministries and authorities responsible for influencing or implementing national policies affecting innovation. Key institutions include the Ministry of Technology, Communication and Innovation ( MTCI ), the Mauritius Research Council

( MRC ), the Human Resources Development Council ( HRDC ), the Ministry of Education and Human Resources, Tertiary Education and Scientific Research ( MEHTESR ), the Ministry of Industry, Commerce and Consumer Protection ( MICCP ), and the National Productivity and Competitiveness Council ( NPCC ).

Table 3 : Policy support network

Name of the institution Description of its innovation-related services

POLICY SUPPORT NETWORK The following organizations are part of policy support :

Ministry of Technology, Communication and Innovation ( MTCI )

Its main innovation-related functions are : • Set policy for innovation – National innovation framework being finalized.

Pushing for more applied research

Mauritius Research Council ( MRC ).

Promotes and coordinates government investment in research. Set up in 1992. The MRC acts as a central body to advise Government on Science and Technology issues. Operates under the Ministry of Technology, Communication and Innovation. It counts with one Executive Director, five research coordinators/officers and 10 Research Assistants• Study on Research–Industry linkage

( exploring role of these linkages, types and bottlenecks )• Collaborative Research and Innovation Grant Scheme

( fosters academia and industry linkages )• National Research Foresight Exercise• Working on an SME Innovation Grant Scheme

Human Resources Development Council ( HRDC )

Its main innovation-related functions are : • Advice on HRD policies

– Training needs analysis• Manages HRDC Fund

– National Training Fund – National Training Refund Scheme ( Levy Grant Scheme )

Min. of Education and Human Resources, Tertiary Education and Scientific Research ( MEHTESR )

• Set policy for education• Set policy for research ( link with MRC e.g.– advice on Ocean strategy through

consultative process )• Limited focus on innovation and research

High-level Steering Committee on Innovation under PMO

Members include MCCI, BOI, MoICT, and some operators

Ministry of Industry, Commerce and Consumer Protection ( MICCP )

Its main innovation-related functions are : • Policy formulation• Formulation of provision of incentives for the manufacturing

Ministry of Business, Enterprise and Cooperatives( MBEC )

Becoming a very dynamic ministry in supporting SMEs but not on innovation. It would be a good partner for promoting innovation for SMEs

Board of Investment ( BOI ) National investment promotion agency. Mandate to promote and facilitate ( foreign and domestic ) investment in the country and domestic investment in Africa. It works in close collaboration with government bodies, institutions and private sector companies.It has an important role of policy advocacy to improve the competitiveness of Mauritius continuously.

Min. of Finance and Economic Development ( MoFED )

Driving smart cities, financing SMEsHas earmarked MUR 125 million for the National Innovation Fund – managed by MRC through Ministry

Ministry of Ocean Economy New ministry. Good work to develop adequate regulatory framework. Constraint to develop aquaculture because of Pharma Act

Ministry of Agro- Industry and Food Security

Promotes development of agriculture and the agro industry focusing on safety, supply, quality, innovation and new technology through service providing institutions

12 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

KNOWLEDGE CREATION AND DISSEMINATION NETWORK

This network ( Table 4 ) includes key research, educa-tion and training institutions in Mauritius. Key institu-tions include the Centre for Biomedical and Biomaterials Research ( CBBR ) and the three main universities of the country, as well as key sector institutions Mauritius

Sugar Industry Research Institute ( MSIRI ), Food and Agricultural Research and Extension Institute ( FAREI ), Mauritius Oceanography Institute, Albion Fisheries Research Centre ( AFRC ), National Computer Board, and the Fashion and Design Institute ( FDI ). A more detailed assessment of knowledge institutions is provided in the Skills Development assessment.

Table 4 : Knowledge creation and dissemination network

KNOWLEDGE NETWORK The following organizations are part of the knowledge network :

Centre for Biomedical and Biomaterials Research ( CBBR ) ( under MRC )

• Conducts research• Provide ad-hoc services to industry

– One of the few in Eastern and Southern Africa – Exploring potential for new industries around biopolymers, nanotech. & biopharma – Four permanent researchers with world class expertise & 14 research assist. – Recognized as a centre of excellence in a peer review exercise conducted by African Network for Drugs and Diagnostics Innovation ( ANDI )

University of Mauritius Largest university in MauritiusIts main innovation-related functions are : • Train human resources• Conduct research ( limited industrial applications )

University of Technology Second university in Mauritius

Université Des Mascaraignes

Third university in Mauritius. Private Some specialized courses ( engineering programmes ) are very good.

Agriculture

Mauritius Sugar Industry Research Institute ( MSIRI )

Operates under the Mauritius Cane Industry Authority ( MCIA ). Its main innovation-related functions are : • Conduct research on all aspects of sugarcane, mostly focused on genetic research,

recently also on byproducts

Food and Agricultural Research and Extension Institute ( FAREI )

A government entity operating under the Ministry of Agro Industry and Food security. Established in 2014. It has taken over the functions of the Food and Agricultural Research Council ( FARC ) and the Agricultural Research and Extention Unit ( AREU ). Its main innovation-related functions are : • conducts research in non-sugar crops, livestock, forestry • provides extension services to farmers in Mauritius including its outer islands

Ocean Economy

Mauritius Oceanography Institute ( set up in 2000 )

Advises Government on the formulation and implementation of policies and programmes in respect to oceanography. A parastatal organisation of the Ministry of Ocean Economy. Some 25 Research scientists/Associate Research scientistsIts main innovation-related functions are : • Advice on oceanography policy. How does it relate to innovation activities?• Conducts research, mostly on marine life ( coral reefs, pollution ),

some related to industry ( e.g, mapping of sea bed for planting of algae )

Albion Fisheries Research Centre ( AFRC )

• Conducts research on fish that can be reared on aquaculture• Breeding Industry has good potential

ICT

National Computer Board Implementation agency under the Ministry of TCI. Promotes development of the ICT sector• Provides training • Provides advice on ICT policy ( e.g. broadband ) – restricted mandated

13WHERE WE ARE NOW

KNOWLEDGE NETWORK The following organizations are part of the knowledge network :

Medical devices

None

Textiles

Fashion and Design Institute ( FDI )

Under the Ministry of Industry ( set up in 2010 ). Has taken over some functions ( textile design ) of the School of Textiles of UoM. 400 students. Its main innovation-related functions are to : • Provide academic training ( HND, Degree courses )• Provide some services to industry

Financial services

None A public Financial Services Institute is currently being established

Cultural Tourism

None Many private training organizations. Cultural tourism not covered

INNOVATION SUPPORT NETWORK

This network ( Table 5 ) includes key public and private organizations or agencies that provide innovation-related services. These may include organizations financing inno-vation, intermediary organizations providing technologi-cal services, supporting technology transfer, intellectual property, etc.

Table 5 : Innovation support network

INNOVATION SUPPORT NETWORK The following organizations are part of the innovation support network :

Mauritius Research Council ( MRC ).

See earlier description in policy network. MRC has also been added as a key innovation support organization as it provides finance and information for innovation activities.

Industrial Property Office MoFARIIT

IP office of Mauritius, under the Ministry of Foreign Affairs. Its main innovation-related functions are : • Grants of patents• Registration of trademarks and industrial design• Promotion of IP ( but no specific budget )• Ad-hoc talks at research centres• No experts in IPO for patent draftingProvisions to join Madrid / Lisbon/ PCT/ The Hague – pending political decision

National Productivity and Competitiveness Council ( NPCC )

Under Ministry of Good Governance. Promotion of productivity, and one component of this is to promote innovation at different levels ( education, community, industry ), through the implementation of training and capacity building programmes & recognition awards. Both with SMEs and large firms, domestic and export-oriented ( not with subsidiaries of foreign firms )• Capacity building programmes : Training for employees on innovation quality management ;

setting up innovation management system ; productivity improvement process

Mauritius Standards Bureau ( MSB )

Its main function is standards development, but these are not mandatory. Limited adoption. No control of imported products ( no level playing field ). Export companies need to comply by high standards. Quality is controlled by the buyers Market driven in adoption of standardsProvide testing services, no link to innovation, focus on consumer protection not on development of new products

14 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

INNOVATION SUPPORT NETWORK The following organizations are part of the innovation support network :

SME Development Agency

Promotes SME development, no specific innovation service

Mauritius Business Growth Scheme ( MBGS ) Unit

Matching grant provides access to consultancy services. ( Funds cannot be used for equipment acquisition ). Originated with support from the World Bank 2010-15 The scheme has not been renewed and has been replaced by MyBiz

MyBiz Under MoBEC. Under discussion, similar schemes to MBGS

BUSINESS NETWORK

This sector includes private sector associations and or-ganizations supporting firm activities ( leading sector de-velopment, promoting firm cooperation and linkages, advocating for the sector ) ( Table 6 ).

Table 6 : Business network

BUSINESS NETWORK The following organizations are part of the business network :

Enterprise Mauritius ( EM ) Trade promotion organization. It offers no specific innovation-related services.

Mauritius Chamber of Commerce and Industry ( MCCI )

Promoting enterprises, multi-sectoral, ( export & domestic, services )Its main innovation-related services : • Advisory services to its members ( but not innovation-related )• Training services ( business school, but not related to innovation, serving both

school leavers and firms )• Providing support services ( but not innovation-related e.g. conciliation &

arbitration )• Dissemination of information ( trade information mainly )• Advocate on behalf of members

Mauritius Export Association ( MEXA )

Represents export-oriented enterprises. Textile, fisheries. It does not provide innovation-related services.

Business Mauritius Groups eight major private sector organizations, including Mauritius Enterprise Federation ( MEF ), Joint Economic Council ( JEC ), Mauritius Employers Federation.Its main innovation-related services : • No formal role in promoting innovation but through involvement in different public

committees, certain representatives advocate actively to promote innovation

Mauritius IT Industry Association ( MITIA )

Promote software development.Potential in software development

Outsourcing and Telecommunications Association of Mauritius ( OTAM )

No work on innovation. Focused on BPO

Association des Hoteliers et Restaurateurs de L’ille Maurice

Group operators, hotel and restaurant industryNo specific mandate on innovation

15WHERE WE ARE NOW

ANALYSIS OF THE INNOVATION SUPPORT NETWORK

As discussed earlier ( see analysis of function 5. Creating and modifying institutions ), at the policy setting lev-el there is limited information and therefore confusion among stakeholders on what the roles and responsibili-ties are of the different research and innovation policy set-ting institutions, their memberships and the coordination mechanisms available. A clear division of labour would enhance the design, coordination and implementation of research and innovation policy. For instance, the Mauritius Research Council is carrying out at the same time activi-ties at the policy level ( advise the MTCI and formulate sci-ence and technology policy ) and at the implementation level ( financing research, providing information/advisory services related to innovation ). This creates confusion and potential conflicts of interest.

A general comment regarding the innovation support network, at the policy, support and knowledge levels, is that supporting innovation activities is not the main activ-ity for most of the organizations. The mandate of these organizations includes innovation only on a secondary level and is often endowed with limited skills and funds to support innovation activities. As these organizations have no strong mandate to promote innovation, they are not strong advocators or communicators on the need to support innovation efforts.

Coordination between education institutions and industry is very weak. There are no appropriate governance struc-tures, incentives or facilitation mechanisms

There is a very limited number of institutions providing innovation support services, and generally, these organi-sations have limited resources to provide such services.

INNOVATION FRAMEWORK DEVELOPMENTMauritius does not yet have a national innovation strategy or a visible agency that leads the design and implementa-tion of a national innovation strategy.

The current government programme 2015-20194 notes the importance of innovation for the country5. Programme commitments include the creation of a techno park 6 and the development of a National TCI Strategic Plan 2015-20207. A Smart Mauritius Strategy was launch in ear-ly 2015 by the Ministry of Technology, Communication and Innovation, which includes the objective of en-couraging innovation and adopt innovative technolo-gies through a National Innovation programme of US $ 4 million. The current E-Government Strategy 2013-2017 proposes a number of measures that can enhance busi-ness interaction with public institutions and simplify doing business.

4. Government Programme 2015 – 2019 Achieving Meaningful Change Address by The President of the Republic of Mauritius, Tuesday, 27 January 2015. 5. Para 292. So our creed today is innovative socialism, and all members of Government believe passionately in this vision. In short, the ambition is to create an economy where Mauritius would be a regional reference in entrepreneurship, aviation and tourism, shipping and logistics, technology and innovation, just to name a few. 6. Para 179. Innovation will be a key driver of growth. In that context, a techno park will be set up to create the right environment for carrying out new research, clinical and innovation activities.7. Para 230. In achieving meaningful change, technology, communication and innovation will constitute key drivers. In this respect, a National TCI Strategic Plan 2015-2020 will be formulated to pave the way for an Intelligent and Smart Mauritius.

Photo: (cc) pixabay

16 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

In the past, there have been a number of efforts to support a national innovation strategy. These include :

� The Science Technology Innovation Programme 2009 � Mauritius National Research Foresight Exercise con-

ducted in 2013 ( Ravetz, 2013 ) � Draft National Policy and Strategy on Science,

Technology and Innovation ( 2014-2025 ) ( Iizuka et al., 2015 )

At the end of 2014, as a result of consultations among pol-icy makers on the national innovation system of Mauritius, a set of policy recommendations was put forward in a study led by the Institute for Innovation and Technology ( Meier zu Köcker et al., 2015 ).

The above indicates that a wide range of stakeholders has considered the importance of strengthening Mauritius’ national innovation system, but also highlights repeat-ed problems to establish a clear national innovation framework.

There is no agency clearly in charge of promoting in-novation in Mauritius. The Ministry of Technology, Com-munication and Innovation is responsible for promoting innovation, but the information available seems to suggest that such efforts are limited and concentrated on the ICT sector and not across the economy.

Promoting fast, reliable and affordable access to broad-band and the development of ICT skills can be important issues for promoting innovation. However, fostering firm innovation requires a broader set of policies and meas-ures that help build the capacity of agents to innovate, and stimulate the exchange of knowledge and informa-tion between agents to facilitate innovation activities. A national innovation strategy should encompass a broad range of efforts aimed at ensuring that the innovation sys-tem carries out its 10 activities ( see Table 1 ).

To promote innovation in a specific sector it is essential to rely on a clear sector strategy in the first place. Some sectors, for instance the software sector or the services sector, lack a strategy or a sector development agency.

The promotion of innovation also requires a shared under-standing across a wide variety of agents, including policy makers ( in STI fields as well as in other related fields ), aca-demic sector agents and business and non-governmental organisation representatives, on the role of innovation for economic development, the role of STI policies and their contribution. A common understanding is needed to en-able collaboration.

Lastly, developing adequate responses to promote inno-vation also requires capabilities to understand what the key constraints are for firms to innovate and to monitor and evaluate policies and programmes aimed at promoting

innovation. Mauritius has limited information regarding the innovative activities of its firms and the main barriers they face to innovate ( for instance, it has not conducted any firm innovation survey ) that would enable the design of appropriate policies and strategies.

CONSTRAINTS TO INNOVATIONThis section identifies the key constraints to innovation in Mauritius :

POLICY AND REGULATORY ISSUES

1. Lack of a coherent approach to promote innovation in the export sector – Lack of a long term economic development strate-

gic plan beyond one government mandate – Lack of clear or updated sector development strat-

egies that provide guidance on where the sector is heading and how science, technology and inno-vation can support its development. For instance, there is no strategy for medical devices, cultural tourism or financial services, and the jewellery strat-egy is currently being updated.

– Lack of a national innovation policy framework ( a proposal is currently being finalised )

– No visible leading agency with strong mandate to promote innovation activities. Confusion over which is/should be the apex body for promoting innovation.

– Insufficient information on firm innovation activities to guide policy. No regular innovation surveys or R&D surveys are carried out in Mauritius. Multiple external reports carried out by experts based abroad on a one-off basis.

– Insufficient awareness among policy makers and other key stakeholders on the role of innovation and innovation supportive policies. Innovation as a buz-zword but stakeholders do not share a common understanding on what it means.

– Uncoordinated, piecemeal and non-sustained ac-tions to support the technological upgrade of firms.

2. Limited investment in R&D relevant for priority export sectors – Low levels of R&D investment ( no accurate figure

but estimated at 0.2 % of GDP ) – Low level of private R&D investment ( estimated at

0.05 % of GDP ) – Most public R&D is not in priority sectors ( 61 % is

on agriculture ). Insufficient R&D in aquaculture, agro-processing, biotechnology-based sciences, and ICTs.

– Very few public research centres ( FAREI, CBBR, MOI )

17WHERE WE ARE NOW

– R&D at university does not reflect research needs of priority sectors ( funding for research at university is not linked to priority research areas ).

– Lack of a national innovation policy framework – Lack of a continued research policy. Policies and

programmes change with each new government.

3. Limited number and scale of policy instruments used to promote innovation – Mauritius does not have an incubator infrastructure.

A number of efforts to support new projects or start-ups have taken place recently – for example to sup-port private efforts to build a turbine with support of STING ) ; a newly established business angels network ; MRC pre-incubator support established in 2011 which has supported a network but has not yet incubated a firm. There is a current proposal for an incubator to support start-up firms, but only for the ICT/BPO sector.

– There is no technology transfer office at the University of Mauritius

– There is no technology park – No successful cluster experience – Collaborative grants recently created ( 2014 ) – No innovation grants. One for alternative to plastic

bags, a new one for biotecnology – No fiscal incentives to innovation/R&D – Investment policy does not consider the role of FDI

as an important channel for technology transfer, and as a result there is no strategy to attract invest-ment important for innovation / to foster technology transfer

– Small IP infrastructure ( no signatory to Madrid Convention trademarks ; no attorneys specialized in IP ) partly owing to limited use of patents and other IP and the cost of setting the infrastructure required ( e.g. courts )

SUPPLY-SIDE ISSUES ( SERVICE PROVIDERS SIDE )

1. Shortage and mismatch of skilled labour force The following are some of the key constraints regard-ing the Shortage and mismatch of skilled labour force. These constraints are discussed in more detail in the skills development cross-sector function analysis. – Inadequate TVET and higher education curriculums. – Limited number of dual training ( only in banking

and ICT, which have recently started ). Some cours-es require internships, but the value of internships is limited.

– Increasing but still limited number of doctorate studies and students.

– Private training institutions respond to indus-try needs, but public training institutions are not responsive.

– Difficulties to keep trained skills and to import for-eign skills in some sectors ( e.g. financial services ).

– Addressing these issues requires long-term, cross-ministerial and stakeholder commitment.

2. Deficient provision of relevant and sustained techno-logical support – Good assessments of the technological needs of

different sectors have been carried out in Mauritius but there has been limited follow-up/continuation of efforts to build up technological capacities of firms, particularly SMEs

– Uncoordinated actions to support the technological upgrade of firms. Lack of synergies between pub-lic institutions in a given sector ( e.g. aquaculture ).

– Some relevant institutions only provide basic ser-vices, difficulties to provide more complex or up-dated services. ( e.g. lack of institution providing training and services for the textile industry, the Fashion & Design Institute does not provide train-ing on textiles ).

– Underinvestment and limited upgrading of sector institutions that are critical for technological up-grade ( e.g. Albion Fisheries Research Centre )

3. University’s contribution to an innovative productive sector is limited – Universities have limited financial resources – University students do not graduate with the soft

and hard skills required by industry. – There is a lack of incentives for universities to work

with the private sector – Lack of credibility of the University of Mauritius.

Decreasing performance following increasing num-ber of students

– Limited R&D is conducted at the university ( e.g. lack of incentives for professors − no salary in-creases − to conduct research )

– Lack of a vision/mission/culture for innovation with-in universities

– University R&D is not relevant to industry. A num-ber of factors underpin this situation : the R&D con-ducted by universities is not in the priority sectors for industry, very few patents result from R&D con-ducted at universities, researchers have no incen-tives for the commercialization of their research, the framework for eventually creating spin-offs in universities is unclear )

– No collaboration in joint R&D projects with the pri-vate sector

– Universities do not offer advisory services to the private sector ( i.e. technology assessments, mar-ket intelligence, and other reports are carried out by independent international experts )

18 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

4. Inadequate technological and innovation infrastructure – Limited and high-cost of broadband ( cost of

broadband for business is higher − and for lower speed − than for households ).

– Substantive investment in technical equipment is required to enter in newer value added segments ( e.g. technical textiles ), and there are no incentives for the acquisition of equipment.

DEMAND-SIDE ISSUES ( PRIVATE SECTOR )

1. Lack of a critical mass in innovative subsectorsMauritius has a number of subsectors that are innova-tive ( e.g. medical devices ). However, the absence of a critical mass of firms in those subsectors is limiting the development of the subsector. – Limited firm collaboration ( because of lack of cul-

ture of collaboration, weak industry associations, and piecemeal public support )

– Given the absence of a critical mass of firms and the limited firm collaboration, research projects are of a small scale nature.

2. Smaller firms are not adopting existing technologies – Limited financial resources. ( e.g. banks are not will-

ing to finance the jewellery sector ) – Insufficient access to market and technology

knowledge – Insufficient design knowledge – Smaller firms require sustained support over long-

er periods of time, while government support

programmes tend to be of short duration ( e.g. jew-ellery, discontinued extension services for small-scale fishermen to convert to aquaculture )

3. Insufficient interest for innovation – Lack of interest for entrepreneurship among young

graduates – Insufficient role models for innovation – Risk averse culture in Mauritius – Limited culture ( and probably incentives ) among

smaller firms of working jointly with other firms in innovative projects

– The barriers to innovate ( e.g. shortage of skills, weak sector coordination & horizontal coordination, limited support available ) are much higher than the pressure or the incentives to innovate

4. Lack of offer of innovative products – Limited number of risk takers, particularly as many

SMEs cannot afford to take risk – Small-scale of economic activity and the small size

of the domestic market is often an impediment to innovate, as for instance there is a lack of the re-quired suppliers, technological service providers

– Limited local availability of critical skills ( design, management, soft skills ) & knowledge ( special-ized, up-to-date knowledge of newest technolo-gies ) to innovate

– Innovation only as a response to client demand or market pressure. Medium and large firms will in-novate because they can afford the financial risks.

Box 1 : Summary of constraints to innovation

Policy and regulatory issues � Lack of a coherent approach to promote innovation in the export sector � Limited investment in R&D relevant for priority export sectors � Limited number and scale of policy instruments used to promote innovation

Supply-side issues ( service providers’ side ) � Shortage and mismatch of skilled labour force � Deficient provision of relevant and sustained technological support � University’s contribution to an innovative productive sector is limited � Inadequate technological and innovation infrastructure

Demand-side issues ( private sector ) � Lack of critical mass in innovative segments � Smaller firms are not adopting existing technologies � Insufficient appetite for innovation � Lack of offer of innovative products

19THE WAY FORWARD

THE WAY FORWARD

VISIONThe NES consultations gave stakeholders the opportunity to come together and define their vision for the innova-tion cross-sector. This statement embodies in a simple and direct manner the ambition that innovation could and should support a more competitive economy. Such a sim-ple and direct statement can be used to rally stakeholders around a common goal.

STRATEGIC ORIENTATIONThe innovation vision will be realised through the achieve-ment of four strategic objectives. These objectives provide a framework for addressing the constraints identified, and they highlight key areas where action is required over the coming five years.

“ Innovation for a competitive Mauritius ”Figure 6 : Strategic orientation for innovation

VisionInnovation for a competitive

Mauritius

Strategic objective 3:Increase investments in R&D

relevant for Mauritius economy

Strategic objective 2:Foster a conducive

environment for innovation

Strategic objective 1:Raise widespreadawareness of and

appetite for innovation

20 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

Strategic Objective 1 : Raise widespread awareness of and appetite for innovation

The first strategic objective is to have generated wide-spread consciousness and appetite for innovation among economic actors and policy makers. This will be done through two complementary approaches. The first one is to foster awareness among key stakeholders ( policy makers, firm managers and entrepreneurs, directors of academic and training institutions ) on the urgency to in-novate and opportunities to innovate in firms. This should be complemented with the provision of greater incen-tives to innovate, through the introduction of innovation grant schemes, of an innovation box regime ( see ( MCCI, 2016 ) ) and of tax incentives for R&D activities. These in-centives are complementary, and target different types of innovators. For instance, innovation grant schemes are particularly useful for SMEs with limited resources that are trying to explore the development of new products or processes. They can be useful in generating appetite for innovation among smaller firms who usually do not inno-vate. On the other hand, tax incentives for R&D activities can encourage greater investment in R&D particularly among larger firms, which have already some experience/resources in conducting R&D. The following operational recommendations fall under this strategic objective :

1. Increase awareness among key stakeholders ( policy makers, SMEs, research, training and education insti-tutions ) on urgency to innovate

2. Provide incentives to firms to conduct innovation activities

Strategic Objective 2 : Foster a conducive environment for innovation

The second strategic objective seeks to ensure that there is a conducive environment where innovation activities can flourish. Achieving the objective will require three complementary sets of activities. First, promoting and facilitating greater intra-industry collaboration. The plan of action identifies two specific areas : one fostering linkages between large firms and SMEs, and supporting the devel-opment of a cluster in the life sciences / biotechnology in which firms and research institutions interact to innovate. The second set of activities is aimed at enhancing the in-stitutional framework for promoting innovation, that is, en-hancing the governance of the national innovation system. These include the development and adoption of a national innovation framework, mainstreaming innovation in sec-tor development strategies, reinforcing the role of MRC as the National Innovation Agency, strengthening capaci-ties to monitor and evaluate innovation policy, collecting and making available data to inform innovation policy, and strengthening the IP framework in Mauritius. The third set of activities is aimed at promoting industry-academia collaboration through the introduction of incentives for

universities to conduct collaborative research and re-search in priority sectors, adopting a strategy to enhance academia-industry collaboration, and supporting the co-herent development of business incubators

The following operational recommendations fall under this strategic objective :

1. Increase levels of intra-industry collaboration 2. Enhance institutional framework ( governance ) for pro-

moting innovation3. Promote industry-academia collaboration

Strategic Objective 3 : Increase investments in R&D relevant for Mauritius economy

The third strategic objective aims to increase investments in R&D relevant for Mauritius economy, both public and private investment in R&D, particularly in the priority sectors.

Other operational recommendations, in particular 1.2 ( to provide incentives to firms to conduct innovation activi-ties ), also support this strategic objective.

The following operational recommendations fall under this strategic objective :

1. Promote and facilitate greater private investment in R&D

2. Increase public financing of R&D in priority sectors

Photo: (cc) pixabay

MAURITIUS

RODRIGUESMauritius

Mad

agas

carAFRICA

IndianOcean

IndianOcean

MAURITIUS NATIONAL EXPORT STRATEGY INNOVATION CROSS-SECTOR

PLAN OF ACTION

22 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021St

rate

gic

Obje

ctiv

e 1 :

Rai

se w

ides

prea

d aw

aren

ess

of a

nd a

ppet

ite fo

r inn

ovat

ion

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

1.1

Incr

ease

aw

aren

ess

amon

g ke

y st

akeh

olde

rs

( pol

icy

mak

ers,

SM

Es, r

esea

rch,

tra

inin

g an

d ed

ucat

ion

inst

itutio

ns )

on u

rgen

cy to

in

nova

te

Cond

uct f

our a

war

enes

s se

min

ars

for p

olic

y m

aker

s an

d ot

her k

ey n

atio

nal

stak

ehol

ders

on

inno

vatio

n po

licie

s ( in

clud

ing

SMEs

)2

Seni

or &

mid

dle-

leve

l pol

icy

offic

ials

of

eco

nom

y-re

late

d m

inis

tries

/ age

ncie

s ( e

.g. B

OI, M

TCI,

MBE

C, N

PCC,

M

oEHR

TESR

, MoF

ED,

MoO

E, M

oAIF

S, M

oTL,

M

yBiz

)

»By

201

8, 8

0 % o

f se

nior

and

mid

dle-

leve

l pol

icy

offic

ials

fro

m e

ach

econ

omy-

rela

ted

Min

istry

ha

ve a

ttend

ed th

e wo

rksh

op

MRC

Min

of I

ndus

try/

MCC

I /EM

/ Fo

reig

n ex

pert

inst

itutio

ns

( e.g

. UNC

TAD )

MRC

bu

dget

Set a

pla

n of

act

iviti

es to

fost

er le

arni

ng fr

om in

tern

atio

nal e

xper

ienc

es in

pr

omot

ing

inno

vatio

n, in

clud

ing :

»An

ann

ual s

tudy

-tou

r abr

oad

for k

ey d

ecis

ion

mak

ers

to b

ecom

e fa

mili

ar w

ith

good

pra

ctic

es in

STI

»An

ann

ual c

onfe

renc

e on

a s

peci

fic S

TI p

olic

y ar

ea, t

o ex

plor

e be

st p

ract

ices

in

the

spec

ific

prio

rity

area

for M

aurit

ius.

Prio

rity

topi

cs w

ould

be

prom

otin

g bu

sine

ss in

cuba

tors

, dev

elop

ing

clus

ters

, ena

blin

g ac

adem

ia-in

dust

ry

colla

bora

tion,

fina

ncin

g in

nova

tion,

sup

porti

ng th

e de

velo

pmen

t of t

echn

olog

ical

se

rvic

es »Ac

tivel

y pa

rtici

pate

in in

tern

atio

nal n

etwo

rks

of S

TI p

olic

y ( s

uch

as U

NCTA

D ST

I po

licy

netw

ork )

and

regu

larly

par

ticip

ate

in in

tern

atio

nal S

TI P

olic

y co

nfer

ence

s ( fo

r exa

mpl

e th

e UN

Com

mis

sion

on

Scie

nce

and

Tech

nolo

gy fo

r Dev

elop

men

t )

2Se

nior

& m

iddl

e-le

vel p

olic

y of

ficia

ls

of e

cono

my-

rela

ted

min

istri

es/ a

genc

ies

( e.g

. BOI

, MTC

I, M

BEC,

NPC

C,

MoE

HRTE

SR, M

oFED

, M

oOE,

MoA

IFS,

MoT

L,

MyB

iz )

»An

nual

stu

dy to

ur

orga

nize

d fro

m 2

017

to 2

020

»An

nual

con

fere

nce

on

STI p

olic

y or

gani

zed

from

201

8 »Pa

rtici

patio

n in

at

leas

t two

inte

rnat

iona

l ST

I pol

icy

even

ts p

er

year

, fro

m 2

018

MRC

Min

of

Indu

stry

/ MCC

I /E

M /B

OI

Fore

ign

expe

rt in

stitu

tions

( e

.g. U

NCTA

D,

Wor

ld B

ank,

UN

U M

erit )

MRC

bu

dget

1.1.

3 Co

nduc

t thr

ee w

orks

hops

on

man

agin

g in

nova

tion

for e

nter

pris

es,

incl

udin

g SM

Es, o

fferin

g ad

vanc

ed a

nd c

usto

mis

ed tr

aini

ngs

for m

anag

ers.

Ob

ject

ive :

»To

bui

ld a

dvan

ced

inno

vatio

n m

anag

emen

t ski

lls a

mon

g fir

ms

with

gro

wth

po

tent

ial.

Thes

e co

urse

s wo

uld

build

up

on c

ours

es b

eing

offe

red

by N

PCC

Mod

aliti

es :

»Tw

o-da

y wo

rksh

op ta

rget

ing

firm

s wi

th g

row

th p

oten

tial

2M

anag

ers

of S

MEs

wi

th g

row

th p

oten

tial

»On

e an

nual

wor

ksho

p im

plem

ente

d in

201

7,

2018

and

201

9

NPCC

MCC

I/M

OBEC

M

in o

f Ind

ustry

M

RC,

MRC

un

der

Min

istry

of

TCI

23PLAN OF ACTIONSt

rate

gic

Obje

ctiv

e 1 :

Rai

se w

ides

prea

d aw

aren

ess

of a

nd a

ppet

ite fo

r inn

ovat

ion

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

1.2

Prov

ide

ince

ntiv

es to

fir

ms

to c

ondu

ct

inno

vatio

n ac

tiviti

es

Intro

duce

a m

atch

ing

inno

vatio

n gr

ant s

chem

e co

verin

g fir

m e

xpen

ditu

res

on

inno

vatio

n ac

tiviti

es.

Obje

ctiv

e : »To

enc

oura

ge p

rivat

e se

ctor

inve

stm

ent i

n in

nova

tion

activ

ities

. »To

faci

litat

e en

hanc

ed p

rodu

ct v

alue

add

ition

and

abi

lity

to c

ompe

te in

nic

he

mar

kets

M

odal

ities

: »In

nova

tion

activ

ities

will

be

qual

ified

whe

n wo

rkin

g ou

t the

sch

eme

This

will

requ

ire :

»M

RC c

ondu

cts

and

shar

es w

ith k

ey in

nova

tion

stak

ehol

ders

an

asse

ssm

ent o

f ex

istin

g Co

llabo

rativ

e Re

sear

ch a

nd In

nova

tion

Gran

t Sch

emes

( CRI

GS ) a

nd

othe

r fun

ds a

vaila

ble

for f

inan

cing

R&

D an

d in

nova

tion

activ

ities

in th

e pr

ivat

e se

ctor

»M

TCI a

nd M

RC c

onve

ne a

mee

ting/

work

shop

with

key

inno

vatio

n st

akeh

olde

rs to

id

entif

y sp

ecifi

c in

nova

tion

obje

ctiv

es ( i

.e. i

ncre

ased

inno

vatio

n ac

tiviti

es a

mon

g SM

Es ; o

r inc

reas

ed p

rivat

e R&

D in

vest

men

t ) an

d fin

anci

ng g

aps.

»M

RC c

onve

nes

a te

chni

cal w

orks

hop

with

exp

erts

in fi

nanc

ing

inno

vatio

n to

di

scus

s go

od p

ract

ices

in fi

nanc

ing

inno

vatio

n an

d ex

plor

e op

tions

for M

aurit

ius

»M

RC e

labo

rate

s a

prop

osal

for t

he d

esig

n of

the

inno

vatio

n fu

nd, c

ompr

isin

g : –Sc

ope

of th

e in

stru

men

t ( Q

ualif

ying

exp

ense

s, o

nly

R&D

or a

lso

othe

r in

nova

tion

expe

nditu

re )

–Co

nditi

ons

( the

ratio

of t

he m

atch

ing

gran

t ( e.

g. 5

0-50

for i

ndiv

idua

l pro

ject

s an

d 70

-30

for c

olla

bora

tive

inno

vatio

n pr

ojec

ts ) T

arge

ting

( iden

tify

if th

e gr

ant

shou

ld fa

vour

spe

cific

type

s of

firm

s ( s

uch

as y

oung

firm

s, S

MEs

, spe

cific

se

ctor

s ) »M

RC e

labo

rate

s a

prop

osal

for t

he m

anag

emen

t of t

he in

nova

tion

fund

, cov

erin

g th

e fo

llowi

ng is

sues

: –Pu

blic

atio

n of

cal

l for

pro

posa

ls –Ev

alua

tion

of p

ropo

sals

( eva

luat

ors,

crit

eria

) –Ap

prov

al –Pr

ojec

t im

plem

enta

tion

follo

w up

–Pr

ojec

t eva

luat

ion

–Ev

alua

tion

of th

e im

pact

of t

he fu

nd »Ad

optio

n of

the

prop

osal

for a

n in

nova

tion/

R&D

gran

t sch

eme

1Ta

rget

ben

efic

iary

fir

ms

to b

e id

entif

ied

follo

wing

as

sess

men

t of e

xist

ing

inno

vatio

n fu

nds

and

iden

tific

atio

n of

in

nova

tion

obje

ctiv

es

and

finan

cing

gap

s

»M

RC c

ondu

cts

asse

ssm

ent o

f in

nova

tion

fund

s by

en

d 20

17 »M

RC c

onve

nes

mee

ting

to id

entif

y in

nova

tion

obje

ctiv

es

and

finan

cing

gap

s by

en

d 20

17 »M

RC s

ubm

its

prop

osal

rega

rdin

g th

e de

sign

of t

he

inno

vatio

n fu

nd a

nd

its m

anag

emen

t by

1st q

uarte

r 201

8 »In

nova

tion

gran

t sc

hem

e ap

prov

ed

by 2

018

»By

202

0, 5

0 fir

ms

have

car

ried

out 5

0 in

nova

tion

proj

ects

as

a re

sult

of th

e in

nova

tion

mat

chin

g gr

ant

MRC

/MTC

IM

CCI/M

inis

try

of In

dust

ry/

Fore

ign

expe

rts

in fi

nanc

ing

inno

vatio

n ( U

NCTA

D )

and

inno

vatio

n fin

anci

ng

agen

cies

( Tek

es,

Finc

yt P

eru,

Fo

ndec

yt

Mex

ico )

Min

istry

of

TCI

24 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021St

rate

gic

Obje

ctiv

e 1 :

Rai

se w

ides

prea

d aw

aren

ess

of a

nd a

ppet

ite fo

r inn

ovat

ion

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

1.2

Prov

ide

ince

ntiv

es to

fir

ms

to c

ondu

ct

inno

vatio

n ac

tiviti

es

Intro

duce

the

Inno

vatio

n Bo

x Re

gim

e in

Mau

ritiu

s : 1

0 ye

ars

zero

-rat

ed ta

x on

all i

ncom

e de

rived

from

IP a

sset

s ( p

aten

ts, d

esig

ns a

nd m

odel

s, u

tility

mod

els,

ge

ogra

phic

al in

dica

tions

) Thi

s wi

ll re

quire

: »M

TCI a

nd M

oFED

con

vene

a w

orki

ng g

roup

to d

esig

n th

e in

nova

tion

box r

egim

e.

The

work

ing

grou

p sh

ould

incl

ude

repr

esen

tativ

es fr

om th

e pr

ivat

e se

ctor

, the

IP

O, M

TCI a

nd M

oFED

»Th

e wo

rkin

g gr

oup

orga

nize

s a

disc

ussi

on, p

refe

rabl

y wi

th a

n in

tern

atio

nal e

xper

t on

inno

vatio

n bo

x reg

imes

, to

shar

e go

od p

ract

ices

rega

rdin

g in

nova

tion

box

regi

mes

, and

to id

entif

y th

e sp

ecifi

c ob

ject

ives

of M

aurit

ius

for t

he In

nova

tion

Box

regi

me

»Ba

sed

on th

e id

entif

ied

obje

ctiv

es, t

he w

orki

ng g

roup

will

mak

e a

deta

iled

prop

osal

for a

n In

nova

tion

Box R

egim

e in

clud

ing :

–De

duct

ion

rate

–El

igib

le IP

act

iviti

es –El

igib

le IP

inco

me

–Ot

her r

elev

ant c

riter

ia »Ap

prov

al o

f the

pro

posa

l by

MoF

ED

1Al

l ent

erpr

ises

»At

tract

20

new

inno

vativ

e fir

ms

to

Mau

ritiu

s by

202

0 »M

TCI c

onve

nes

work

ing

grou

p by

m

id-2

017

»Or

gani

ze d

iscu

ssio

n,

3rd q

uarte

r of 2

017

»Pr

esen

t det

aile

d pr

opos

al fo

r In

nova

tion

Box

Regi

me

by e

arly

201

7

MTC

I, M

inis

try o

f Fi

nanc

e an

d Ec

onom

ic

Deve

lopm

ent

MoF

EDBu

dget

ary

Mea

sure

s

Intro

duce

a ta

x in

cent

ive

for R

&D

activ

ities

to e

ncou

rage

priv

ate

sect

or

inve

stm

ent i

n R&

D. T

his

will

requ

ire :

»Or

gani

satio

n of

a te

chni

cal w

orks

hop

on g

ood

prac

tices

in d

esig

ning

tax

ince

ntiv

es fo

r R&

D »Ag

ree

on th

e de

sign

of t

he ta

x inc

entiv

e, in

clud

ing

–Sc

ope

of th

e in

stru

men

t ( Q

ualif

ying

exp

ense

s ) –Ta

rget

ing

( Any

spe

cific

obj

ectiv

es?

( e.g

. mor

e ge

nero

us in

cent

ives

for y

oung

fir

ms,

SM

Es o

r par

ticul

ar s

ecto

rs )

–Ve

rific

atio

n m

etho

ds –Ev

alua

tion

of th

e in

cent

ive

»Ad

optio

n of

the

tax i

ncen

tive

prop

osal

by

MoF

ED

2Fi

rms

inve

stin

g in

R&

D »Or

gani

satio

n of

te

chni

cal w

orks

hop

by O

ctob

er 2

017

»Ag

ree

on d

esig

n of

ta

x inc

entiv

e by

end

of

201

7 »In

clus

ion

of R

&D

tax i

ncen

tive

in

the

Budg

et o

f the

Go

vern

men

t of

Mau

ritiu

s fo

r the

Fi

scal

Yea

r 201

7

MRC

M

inis

try o

f Fi

nanc

e an

d Ec

onom

ic

Deve

lopm

ent,

Indu

stry

re

pres

enta

tives

Budg

etar

y M

easu

res

25PLAN OF ACTIONSt

rate

gic

Obje

ctiv

e 2 :

Fos

ter a

con

duci

ve e

nviro

nmen

t for

inno

vatio

n

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.1.

Incr

ease

d le

vels

of i

ntra

-in

dust

ry

colla

bora

tion

Fost

er li

nkag

es b

etw

een

larg

e en

terp

rises

and

SM

Es. T

o do

so,

it w

ill b

e re

quire

d to

: »Se

t up

a wo

rkin

g gr

oup

on li

nkag

es, i

nclu

ding

repr

esen

tativ

es fr

om la

rge

firm

s an

d SM

Es ; a

nd M

oI,

»Ca

rry

out F

easi

bilit

y st

udy

of p

oten

tial f

or li

nkag

es in

spe

cific

sec

tors

: »Dr

aft t

he T

oR o

f the

feas

ibili

ty s

tudy

, »Co

ntra

ct th

e fe

asib

ility

stu

dy,

»De

sign

and

impl

emen

t the

link

ages

pro

gram

mes

follo

wing

the

resu

lts o

f the

fe

asib

ility

stu

dy.

2La

rge

ente

rpris

es

and

SMEs

»Se

t up

work

ing

grou

p on

lin

kage

s by

ear

ly 2

017.

»De

sign

ToR

for t

he

feas

ibili

ty s

tudy

by

mid

-20

17 »Fe

asib

ility

stu

dy

final

ized

by 2

017

»Im

plem

ent l

inka

ges

prog

ram

me

( if fe

asib

le )

in 2

018

Min

istry

of

Indu

stry

MoB

EC, M

CCI,

MoI

CCP,

EM

, Bu

dget

ary

Mea

sure

s

Supp

ort t

he d

evel

opm

ent o

f a li

fe s

cien

ces/

bio

tech

nolo

gy c

lust

er th

roug

h Bo

I, an

d in

nova

tion

and

tax i

ncen

tives

. »Ac

tivity

to b

e co

nduc

ted

in c

onju

nctio

n w

ith S

TRAT

EGIC

OBJ

ECTI

VE 2

.1

OF

THE

MED

ICAL

DEV

ICES

SEC

TOR

2En

terp

rises

in

the

life

scie

nces

/ bi

otec

hnol

ogy

sect

or ( i

nclu

ding

m

edic

al d

evic

es )

MRC

, BOI

Min

istry

of

Indu

stry

/M

oBEC

Budg

etar

y M

easu

res

/ Don

or

agen

cies

2.2.

Enh

ance

d in

stitu

tiona

l fra

mew

ork

( gov

erna

nce )

fo

r pro

mot

ing

inno

vatio

n

Deve

lop

and

adop

t a N

atio

nal I

nnov

atio

n Fr

amew

ork.

Such

fram

ewor

k sh

ould

est

ablis

h :

»Th

e go

vern

ance

of i

nnov

atio

n po

licy

in M

aurit

ius,

iden

tifyi

ng th

e ke

y bo

dies

, the

ir ro

les

and

resp

onsi

bilit

ies

for d

esig

ning

, im

plem

entin

g an

d ev

alua

ting

STI p

olic

y, »Th

e ke

y na

tiona

l inn

ovat

ion

obje

ctiv

es, a

nd

»Th

e ke

y po

licy

inst

rum

ents

to b

e us

ed.

1Na

tiona

l st

akeh

olde

rs

( indu

stry

, who

le

of g

over

nmen

t, ac

adem

ia )

»Ad

optio

n of

a N

atio

nal

Inno

vatio

n Fr

amew

ork

in

the

seco

nd h

alf o

f 201

7.

MTC

IM

RC

Mai

nstre

am s

trate

gies

pro

mot

ing

inno

vatio

n in

sec

tor d

evel

opm

ent s

trate

gies

. Th

is w

ill re

quire

: »Id

entif

ying

thre

e pr

iorit

y se

ctor

s wh

ere

inno

vatio

n sh

ould

be

prom

oted

furth

er a

s pa

rt of

the

sect

or d

evel

opm

ent s

trate

gy.

»Se

tting

up

an in

nova

tion

prom

otio

n te

am in

eac

h of

the

sect

ors,

incl

udin

g se

ctor

of

ficia

ls, a

n of

ficia

l fro

m M

TCI/M

RC, r

epre

sent

ativ

es fr

om s

ecto

r firm

s an

d fro

m

train

ing

& re

sear

ch in

stitu

tions

rele

vant

to th

e se

ctor

»Co

nven

ing,

for e

ach

sect

or, a

sec

tor i

nnov

atio

n wo

rksh

op to

iden

tify

key

inno

vatio

n bo

ttlen

ecks

and

inno

vatio

n ob

ject

ives

for t

he s

ecto

r. »Ea

ch w

orki

ng te

am p

ropo

sing

an

inno

vatio

n st

rate

gy fo

r the

sec

tor o

r a s

et o

f re

com

men

datio

ns to

mai

nstre

am in

nova

tion

in th

e se

ctor

dev

elop

men

t stra

tegy

. The

st

rate

gy s

houl

d id

entif

y ob

ject

ives

, act

iviti

es, t

arge

ts, i

mpl

emen

ters

and

reso

urce

s. »Ad

optio

n of

pro

posa

ls b

y re

leva

nt m

inis

try.

2Je

welle

ry a

nd

othe

r two

sec

tors

»Th

ree

prio

rity

sect

ors

have

bee

n id

entif

ied

by 2

017.

An

inno

vatio

n te

am is

set

up

for e

ach

sect

or b

y m

id-2

017.

»W

orks

hops

are

co

nven

ed fo

r eac

h se

ctor

by

end

of 2

017

»Pr

opos

als

for s

ecto

r in

nova

tion

stra

tegi

es a

re

mad

e by

201

8 »Th

ree

sect

ors

have

de

velo

ped

an in

nova

tion

stra

tegy

by

2020

Min

istry

of

Indu

stry

M

RC /

MCC

I /

MTC

I / M

oBEC

Dono

r ag

enci

es

26 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021St

rate

gic

Obje

ctiv

e 2 :

Fos

ter a

con

duci

ve e

nviro

nmen

t for

inno

vatio

n

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.2.

Enh

ance

d in

stitu

tiona

l fra

mew

ork

( gov

erna

nce )

fo

r pro

mot

ing

inno

vatio

n

Rein

forc

e th

e ro

le o

f MRC

as

the

Natio

nal I

nnov

atio

n Ag

ency

to p

rom

ote

and

finan

ce in

nova

tion

activ

ities

and

to s

erve

as

a on

e-st

op s

hop

for i

nnov

atio

n-re

late

d in

quiri

es. S

uch

agen

cy s

houl

d ha

ve c

lear

role

s an

d re

spon

sibi

litie

s, a

dequ

ate

reso

urce

s, s

uffic

ient

inde

pend

ence

to b

e ab

le to

per

form

dyn

amic

ally

, and

its

staf

f sh

ould

hav

e a

good

und

erst

andi

ng o

f, an

d cl

ose

rela

tions

with

the

priv

ate

sect

or. T

his

will

requ

ire :

»Th

e es

tabl

ishm

ent o

f a c

lear

man

date

for M

RC to

bec

ome

the

MRI

C »If

appr

opria

te, r

evis

ing

the

orga

niza

tiona

l sta

tus

of th

e ne

w ag

ency

so

that

it c

an a

ct

and

man

age

its a

ctiv

ities

with

suf

ficie

nt in

depe

nden

ce a

nd a

gilit

y ( fo

r ins

tanc

e, in

te

rms

of c

ontra

ctin

g hu

man

reso

urce

s or

ser

vice

s ) »Su

bsta

ntiv

ely

enla

rgin

g th

e re

gula

r bud

get o

f MRI

C so

that

it c

an re

crui

t add

ition

al

staf

f for

and

dev

ote

suffi

cien

t res

ourc

es to

its

inno

vatio

n pr

omot

ion

activ

ities

»To

lead

the

inno

vatio

n pr

ogra

mm

e, a

ppoi

ntin

g a

man

ager

with

stro

ng le

ader

ship

sk

ills,

with

ext

ensi

ve e

xper

ienc

e of

pro

mot

ing

inno

vatio

n in

the

priv

ate

sect

or,

and

who

is a

ble

to w

ork

colla

bora

tivel

y wi

th a

wid

e ra

nge

of a

ctor

s in

clud

ing

entre

pren

eurs

, pol

icy

mak

ers

and

acad

emia

.

2M

RC »M

easu

res

to re

info

rce

role

of M

RC a

ppro

ved

by 2

018

MTC

IM

RCM

anda

te

Stre

ngth

en c

apac

ities

to m

onito

r and

eva

luat

e ( M

&E )

inno

vatio

n po

licy

so th

at

thes

e ar

e co

nduc

ted

on a

regu

lar b

asis

, and

the

info

rmat

ion

colle

cted

hel

ps in

form

the

adju

stm

ent o

f inn

ovat

ion

polic

y an

d pr

ogra

mm

es. T

his

will

requ

ire :

»Cl

early

iden

tifyi

ng th

e or

gan

resp

onsi

ble

for m

onito

ring

and

eval

uatin

g in

nova

tion

polic

y in

the

natio

nal i

nnov

atio

n fra

mew

ork.

The

hig

h-le

vel c

omm

issi

on o

n in

nova

tion

coul

d, fo

r exa

mpl

e, b

e co

nsid

ered

to ta

ke s

uch

resp

onsi

bilit

y. »Pr

ovid

ing

such

org

an w

ith a

dequ

ate

hum

an re

sour

ces/

train

ing

and

finan

cial

re

sour

ces

to c

ondu

ct M

&E

activ

ities

. »Ag

reei

ng o

n a

thre

e-ye

ar p

lan

for m

onito

ring

and

eval

uatin

g in

nova

tion

polic

y an

d pr

ogra

mm

es. T

he p

lan

incl

udes

the

eval

uatio

ns to

be

perfo

rmed

, act

iviti

es

to s

treng

then

the

mon

itorin

g of

inno

vatio

n pr

ogra

mm

es, a

nd a

ctiv

ities

to

com

mun

icat

ing/

shar

ing

the

resu

lts o

f mon

itorin

g an

d ev

alua

tion

exer

cise

s to

info

rm

inno

vatio

n po

licy

2In

nova

tion

polic

y »An

age

ncy

is c

lear

ly

give

n th

e m

anda

te

and

reso

urce

s to

m

onito

r and

eva

luat

e in

nova

tion

polic

ies

and

prog

ram

mes

in

the

natio

nal i

nnov

atio

n fra

mew

ork

( 201

7 ) »Th

ree-

year

pla

n fo

r M&

E in

nova

tion

is a

gree

d by

ea

rly 2

017

MTC

I/MRC

Fore

ign

expe

rt in

stitu

tions

( e

.g. U

NCTA

D )

Incr

ease

the

avai

labi

lity

of in

form

atio

n re

leva

nt to

info

rm th

e de

sign

of i

nnov

atio

n po

licy :

»M

RC c

ondu

cts

and

shar

es w

ith k

ey in

nova

tion

stak

ehol

ders

an

asse

ssm

ent o

f ex

istin

g Co

llabo

rativ

e Re

sear

ch a

nd In

nova

tion

Gran

t Sch

emes

( CRI

GS ) a

nd o

ther

fu

nds

avai

labl

e fo

r fin

anci

ng R

&D

and

inno

vatio

n ac

tiviti

es in

the

priv

ate

sect

or ( s

ee

activ

ity 1

.2.1

) »Co

llect

key

info

rmat

ion

and

indi

cato

rs o

f bus

ines

s in

cuba

tors

car

ried

out b

y M

RC

( see

act

ivity

2.3

.3 )

»As

sess

sta

tus

of a

cade

mia

-Ind

ustry

col

labo

ratio

n in

Mau

ritiu

s ( t

ypol

ogy,

stre

ngth

s,

etc.

) ( se

e ac

tivity

2.3

.2 )

»Co

nduc

t an

inno

vatio

n su

rvey

to h

elp

info

rm th

e de

sign

of r

elev

ant i

nnov

atio

n po

licy

inst

rum

ents

, to

be c

arrie

d ou

t by

MRC

as

the

Natio

nal I

nnov

atio

n Ag

ency

in

colla

bora

tion

with

the

natio

nal s

tatis

tical

offi

ce.

2In

nova

tion

polic

y »M

RC c

ondu

cts

asse

ssm

ent o

f in

nova

tion

fund

s by

end

20

17 ( s

ee a

ctiv

ity 1

.2.1

) »M

RC m

akes

an

inve

ntor

y of

exi

stin

g bu

sine

ss in

cuba

tors

by

end

2017

( see

act

ivity

2.

3.3 )

»As

sess

sta

tus

of

acad

emia

-Ind

ustry

co

llabo

ratio

n in

M

aurit

ius

( typ

olog

y, st

reng

ths,

etc

. ) ( s

ee

activ

ity 2

.3.2

) »In

nova

tion

surv

ey

cond

ucte

d wi

th n

atio

nal

stat

istic

al o

ffice

by

2018

MRC

Natio

nal

stat

istic

al

offic

e,

Fore

ign

expe

rt in

stitu

tions

( e

.g. U

NCTA

D,

UNES

CO

Inst

itute

of

Stat

istic

s )

27PLAN OF ACTIONSt

rate

gic

Obje

ctiv

e 2 :

Fos

ter a

con

duci

ve e

nviro

nmen

t for

inno

vatio

n

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.2.

Enh

ance

d in

stitu

tiona

l fra

mew

ork

( gov

erna

nce )

fo

r pro

mot

ing

inno

vatio

n

( To

stre

ngth

en th

e IP

fram

ewor

k in

Mau

ritiu

s )En

dow

the

IP O

ffice

with

ade

quat

e fu

ndin

g an

d hu

man

reso

urce

s to

: –Pr

ovid

e se

rvic

es a

nd a

dvic

e to

Mau

ritia

n en

terp

rises

and

inve

stor

s. –M

anag

e an

d di

ssem

inat

e IP

-rel

ated

info

rmat

ion.

–To

recr

uit a

dditi

onal

sta

ff ( e

.g. p

aten

t exa

min

ers )

and

upg

rade

the

skill

s of

cur

rent

st

aff.

»R

EFER

TO

STR

ATEG

IC O

BJEC

TIVE

2 T

HE

BRAN

DING

CRO

SS-S

ECTO

R FU

NCTI

ON

( Act

iviti

es 2

.1.1

-2.2

.2 )

1IP

Offi

ce »An

nual

out

reac

h ca

mpa

ign

orga

nize

d by

IPO

»Th

e IP

offi

ce is

ass

igne

d its

own

bud

get b

y 20

17,

and

incr

ease

s by

2 %

an

nual

ly.

Indu

stria

l Pr

oper

ty

Offic

e

WIP

OGo

vern

men

t bu

dget

, W

IPO

( To

stre

ngth

en th

e IP

fram

ewor

k in

Mau

ritiu

s ) –M

aurit

ius

to jo

in re

leva

nt W

IPO

-adm

inis

tere

d tre

atie

s, e

.g. t

he M

adrid

Ag

reem

ent,

Lisb

on T

reat

y, Pa

tent

Coo

pera

tion

Trea

ty, T

he H

ague

Agr

eem

ent (

note

: le

gisl

atio

n re

ady,

only

pol

icy

deci

sion

requ

ired )

. »R

EFER

TO

STR

ATEG

IC O

BJEC

TIVE

2 T

HE

BRAN

DING

CRO

SS-S

ECTO

R FU

NCTI

ON

( Act

iviti

es 2

.1.1

-2.2

.2 )

2In

vent

ors,

firm

s,

»By

202

0, M

aurit

ius

is p

arty

to th

e fo

llowi

ng W

IPO-

ad

min

iste

red

treat

ies :

M

adrid

Agr

eem

ent,

Lisb

on T

reat

y, Pa

tent

Co

oper

atio

n Tr

eaty

, The

Ha

gue

Agre

emen

t

Indu

stria

l Pr

oper

ty

Offic

e

-Go

vern

men

t bu

dget

, W

IPO

( To

stre

ngth

en th

e IP

fram

ewor

k in

Mau

ritiu

s ) –En

actm

ent o

f the

lega

l fra

mew

ork

in re

spec

t of p

lant

var

ietie

s, g

eogr

aphi

cal

indi

catio

n/ a

ppel

latio

n of

orig

in ( n

ote :

legi

slat

ion

read

y, on

ly p

olic

y de

cisi

on

requ

ired )

. »R

EFER

TO

STR

ATEG

IC O

BJEC

TIVE

2 T

HE

BRAN

DING

CRO

SS-S

ECTO

R FU

NCTI

ON

( Act

iviti

es 2

.1.1

-2.2

.2

1Pl

ant b

reed

ers,

fir

ms

»Le

gal f

ram

ewor

k fo

r pla

nt v

arie

ties,

ge

ogra

phic

al in

dica

tions

en

acte

d by

201

7

Indu

stria

l Pr

oper

ty

Offic

e

-Go

vern

men

t bu

dget

, W

IPO

2.3.

Pro

mot

e in

dust

ry-

acad

emia

co

llabo

ratio

n

Prog

ress

ivel

y in

crea

se th

e pe

rcen

tage

of r

esea

rch

budg

et a

lloca

ted

to

colla

bora

tive

rese

arch

and

to re

sear

ch in

prio

rity

sect

ors.

To

do s

o, th

e fo

llowi

ng

step

s wo

uld

need

to b

e ta

ken :

»Se

t up

a wo

rkin

g gr

oup

to re

view

pub

lic re

sear

ch g

roup

( for

exa

mpl

e Co

mm

ittee

on

aca

dem

ia-in

dust

ry c

olla

bora

tion )

. The

wor

king

gro

up re

spon

sibl

e fo

r thi

s ac

tivity

sho

uld

be le

d by

Bud

get o

ffice

( 201

7 ) a

nd M

RC,M

oEHR

TESR

and

com

pris

e re

pres

enta

tives

from

UoM

, UoT

; fro

m p

rivat

e se

ctor

, »Id

entif

y pu

blic

bud

get a

lloca

ted

for r

esea

rch

( thr

ough

uni

vers

ities

and

thro

ugh

publ

ic re

sear

ch in

stitu

tions

).( 20

17 )

»Id

entif

y pr

iorit

y ec

onom

ic s

ecto

rs ( 2

017 )

»Es

tabl

ish

crite

ria fo

r res

earc

h to

be

cons

ider

ed c

olla

bora

tive

»Ag

ree

on ta

rget

s fo

r col

labo

rativ

e re

sear

ch a

nd re

sear

ch a

lloca

ted

to p

riorit

y se

ctor

s »Re

view

con

ditio

ns fo

r pub

lic fu

ndin

g of

rese

arch

( inc

ludi

ng fu

nds

allo

cate

d th

roug

h un

iver

sity

bud

gets

, fin

anci

ng o

f pub

lic re

sear

ch in

stitu

tions

and

for i

ndiv

idua

l re

sear

ch p

roje

cts )

to e

nsur

e th

at th

e pe

rcen

tage

s of

reso

urce

s al

loca

ted

to

colla

bora

tive

rese

arch

and

prio

rity

sect

ors

incr

ease

ove

r tim

e in

acc

orda

nce

with

ag

reed

targ

ets

»Co

mm

unic

ate

such

con

ditio

ns to

rese

arch

dep

artm

ents

/ ins

titut

ions

2In

dust

ries

»Re

sear

ch b

udge

t al

loca

ted

to p

riorit

y se

ctor

s : 2

0 % ( 2

018 )

; 30

% ( 2

020 )

. »Re

sear

ch b

udge

t al

loca

ted

to

colla

bora

tive

rese

arch

: 10

% ( 2

018 )

; 20 %

( 2

020 )

.

Min

istry

of

Fina

nce

and

Econ

omic

De

velo

pmen

tM

oEHR

TESR

. M

RC

UoM

, UoT

MRC

28 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021St

rate

gic

Obje

ctiv

e 2 :

Fos

ter a

con

duci

ve e

nviro

nmen

t for

inno

vatio

n

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

2.3.

Pro

mot

e in

dust

ry-

acad

emia

co

llabo

ratio

n

Adop

t a s

trate

gy to

enh

ance

aca

dem

ia-in

dust

ry c

olla

bora

tion.

To

do s

o :

»Se

t up

a co

mm

ittee

on

acad

emia

-indu

stry

col

labo

ratio

n, c

onfo

rmed

by

high

-le

vel d

ecis

ion

mak

ers

from

gov

ernm

ent,

indu

stry

, uni

vers

ities

and

pub

lic re

sear

ch

cent

res.

The

Com

mitt

ee s

houl

d be

led

by M

TCI a

nd M

oEdu

catio

n »Co

nduc

t a s

erie

s of

ass

essm

ents

/wor

ksho

ps to

iden

tify

oppo

rtuni

ties

for a

cade

mia

-in

dust

ry c

olla

bora

tion,

and

to id

entif

y th

e m

echa

nism

s an

d fin

anci

al re

sour

ces

for

colla

bora

tion.

–As

sess

men

t/W

orks

hop

1 : A

sses

s st

atus

of a

cade

mia

-indu

stry

col

labo

ratio

n in

M

aurit

ius

( typ

olog

y, st

reng

ths,

etc

. ) –As

sess

men

t/W

orks

hop

2 : Id

entif

y ar

eas

in w

hich

aca

dem

ia-in

dust

ry c

olla

bora

tion

( tra

inin

g, c

urric

ulum

s de

velo

pmen

t, sh

arin

g in

frast

ruct

ure,

join

t res

earc

h,

tech

nolo

gica

l ser

vice

s, b

usin

ess

incu

batio

n, a

dvis

ory

serv

ices

cou

ld c

ontri

bute

to

supp

ortin

g in

nova

tion

effo

rts,

–Pr

opos

al/W

orks

hop

3 : P

ropo

se a

five

-yea

r pla

n of

act

ion

to s

treng

then

aca

dem

ia-

indu

stry

col

labo

ratio

n. T

he p

ropo

sal s

houl

d sp

ecify

obj

ectiv

es a

nd ta

rget

s,

activ

ities

, tim

efra

mes

, im

plem

ente

rs, c

omm

itmen

ts b

y di

ffere

nt a

ctor

s. –Ad

optio

n of

pla

n of

act

ion

to s

treng

then

aca

dem

ia-in

dust

ry c

olla

bora

tion

2Uo

M, U

TM,

Publ

ic re

sear

ch

cent

res,

Pvte

un

iver

sitie

s an

d tra

inin

g ce

ntre

, IP

O, in

dust

rialis

ts

»Co

mm

ittee

on

acad

emia

-in

dust

ry c

olla

bora

tion

set u

p by

end

of 2

017.

Conf

orm

ed b

y hig

h-le

vel

deci

sion

mak

ers,

and

wi

th a

clea

r ToR

»A

serie

s of

thre

e as

sess

men

ts/

work

shop

s ar

e ca

rried

ou

t by

end

2017

to

iden

tify

oppo

rtuni

ties

of in

dust

ry-a

cade

mia

co

llabo

ratio

n, a

s we

ll as

mec

hani

sms

and

finan

cial

reso

urce

s fo

r suc

h co

llabo

ratio

n im

plem

ente

d by

201

7 »Ad

optio

n of

pla

n of

ac

tion

to s

treng

then

ac

adem

ia-in

dust

ry

colla

bora

tion

MTC

I, M

inis

try o

f Ed

ucat

ion

MCC

I, M

EXA,

AM

M, M

in o

f In

dust

ry,U

oM

Min

of I

CT

and

Min

of

Educ

atio

n

Supp

ort t

he d

evel

opm

ent o

f coh

eren

t Bus

ines

s In

cuba

tors

pro

posa

ls. T

o do

so :

»Co

ntin

ue s

uppo

rt fo

r La

Plag

e St

art-

up In

cuba

tor P

roje

ct, a

pub

lic-p

rivat

e se

ctor

pa

rtner

ship

pro

ject

whi

ch is

bei

ng im

plem

ente

d by

MRC

afte

r ext

ensi

ve d

iscu

ssio

ns

amon

g st

akeh

olde

rs.

»Se

t up

a m

ulti-

stak

ehol

der g

roup

that

incl

udes

diff

eren

t pub

lic a

genc

ies,

priv

ate

orga

niza

tions

, and

edu

catio

n in

stitu

tions

pro

mot

ing

busi

ness

incu

bato

rs w

ith th

e ob

ject

ive

to s

hare

exp

erie

nces

rega

rdin

g bu

sine

ss in

cuba

ting

initi

ativ

es ( i

nclu

ding

th

e ne

w La

Pla

ge S

tart

up In

cuba

tor P

roje

ct a

nd o

ther

pro

posa

ls b

eing

mad

e as

par

t of

sm

art c

ity p

roje

cts )

»Fo

ster

lear

ning

from

inte

rnat

iona

l goo

d pr

actic

es in

the

setti

ng u

p an

d m

anag

emen

t of

incu

bato

r pro

gram

mes

, by,

for e

xam

ple,

invi

ting

on a

regu

lar b

asis

man

ager

s of

incu

bato

r pro

gram

mes

and

dev

elop

ing

partn

ersh

ips

with

suc

h in

stitu

tions

( e.g

. EP

FL, T

ekes

, Wor

ld B

ank’

s In

foDe

v in

cuba

tor p

rogr

amm

e )

»Ag

ree

on k

ey in

form

atio

n an

d in

dica

tors

on

busi

ness

incu

bato

rs th

at w

ould

be

usef

ul

to c

olle

ct a

nd m

onito

r.

2In

cuba

tees

»La

Pla

ge S

tart-

up

Incu

bato

r is

fully

set

up

by 2

017.

»By

202

0, 1

5 fir

ms

have

be

en in

cuba

ted.

»By

201

8, th

ere

is a

cor

e m

ultis

take

hold

er g

roup

su

ppor

ting

busi

ness

in

cuba

tors

»By

201

9, th

ere

is

regu

lar i

nfor

mat

ion

on

key

info

rmat

ion

and

indi

cato

rs re

gard

ing

busi

ness

incu

bato

rs in

M

aurit

ius

Busi

ness

M

aurit

ius,

M

RC

Min

istry

of

Fina

nce

and

Econ

omic

De

velo

pmen

t, In

tern

atio

nal

agen

cies

( W

orld

Ban

k,

UNCT

AD ),

well-

know

n fo

reig

n in

cuba

tors

( e

.g. E

PFL,

Te

kes )

Gove

rnm

ent

budg

et, p

ri-va

te s

ecto

r, do

nors

2.4.

Rei

nfor

ce

the

offe

r of

tech

nolo

gy

serv

ices

Deve

lop

a te

chno

logy

cen

tre o

n a

PPP

basi

s, to

sup

port

firm

s, s

peci

ally

SM

Es, w

ith

faci

litie

s an

d lin

kage

s fo

r 3D

prot

otyp

ing

and

prin

ting

2An

y fir

m,

incl

udin

g je

welle

ry fi

rms

»By

201

7 th

e te

chno

logy

ce

ntre

is in

pla

ce. B

y 20

20, 3

0 en

terp

rises

ar

e re

gula

rly u

sing

the

serv

ices

BPM

LM

TCI

Budg

etar

y M

easu

res

Deve

lop

supp

ort f

or in

nova

tion

and

rein

forc

e pr

ivat

e in

itiat

ives

in A

quac

ultu

re »R

EFER

TO

STR

ATEG

IC O

BJEC

TIVE

3 F

OR

THE

FISH

ERIE

S SE

CTO

R

Deve

lop

supp

ort f

or in

nova

tion

and

rein

forc

e pr

ivat

e in

itiat

ives

in a

gro-

proc

essi

ng »R

EFER

TO

STR

ATEG

IC O

BJEC

TIVE

1 a

nd 3

FO

R TH

E AG

RO-P

ROCE

SSIN

G SE

CTO

R ( a

ctiv

ities

1.3

.2, 3

.1.1

and

3.2

.2 )

29PLAN OF ACTIONSt

rate

gic

Obje

ctiv

e 3 :

Incr

ease

inve

stm

ent i

n R&

D re

leva

nt fo

r Mau

ritiu

s ec

onom

y

Ope

ratio

nal

obje

ctiv

esAc

tiviti

esPr

iorit

y1=

high

2=m

ed3=

low

Impl

emen

tatio

n pe

riod

Bene

ficia

ries

Targ

ets

Lead

im

plem

ente

rSu

ppor

ting

impl

emen

ters

Poss

ible

fu

ndin

g so

urce

2017

2018

2019

2020

2021

3.1.

Pro

mot

e an

d fa

cilit

ate

grea

ter p

rivat

e in

vest

men

t in

R&D

Expa

nd th

e Co

llabo

rativ

e Re

sear

ch a

nd In

nova

tion

Gra

nt S

chem

es (

CRIG

S )

and

othe

r rel

evan

t sch

emes

to fi

nanc

e jo

int R

&D

proj

ects

bet

ween

firm

s an

d re

sear

ch d

epar

tmen

ts/c

entre

s.

1Un

iver

sity

de

partm

ents

, re

sear

ch c

entre

s an

d fir

ms

cond

uctin

g co

llabo

rativ

e re

sear

ch

»In

crea

se b

y 50

%

on a

n an

nual

ba

sis

the

publ

ic

reso

urce

s al

loca

ted

to c

olla

bora

tive

rese

arch

gra

nts

( to b

e m

atch

ed b

y a

50 %

incr

ease

in

priv

ate

reso

urce

s )

MRC

M

inis

try o

f Fin

ance

an

d Ec

onom

ic

Deve

lopm

ent

Gove

rnm

ent

budg

et

Revi

ew re

gula

tory

fram

ewor

k to

ena

ble

and

regu

late

clin

ical

tria

ls fo

r med

ical

de

vice

s »R

EFER

TO

THE

MED

ICAL

DEV

ICES

SEC

TOR

OPE

RAT

ION

AL O

BJEC

TIVE

1.1

.

2En

tire

valu

e ch

ain

»M

edic

al D

evic

es

Act d

rafte

d an

d in

trodu

ced

to th

e Pa

rliam

ent f

or

enac

tmen

t by

mid

-20

17

Stee

ring

Com

mitt

eeM

inis

try o

f Hea

lth

and

Qual

ity o

f Life

M

inis

try o

f Ind

ustry

, Co

mm

erce

and

Co

nsum

er P

rote

ctio

n

No b

udge

t re

quire

d

Note

: Act

iviti

es 1

.2.1

, 1.2

.2, a

nd 1

.2.3

als

o co

ntrib

ute

to th

is o

pera

tiona

l obj

ectiv

e.

3.2.

Incr

ease

pu

blic

fin

anci

ng o

f R&

D in

prio

rity

sect

ors

Stre

ngth

en th

e ca

paci

ties

of th

e Al

bion

Fis

herie

s Re

sear

ch C

entre

, inc

reas

e its

R&

D bu

dget

and

infra

stru

ctur

e in

par

ticul

ar to

sup

port

R&D-

rela

ted

aqua

cultu

re

and

to th

e us

e an

d va

loriz

atio

n of

by-

catc

h. »R

EFER

ALS

O TO

TH

E FI

SHER

IES

SECT

OR

OPE

RAT

ION

AL O

BJEC

TIVE

3.1

.

2Al

bion

Fis

herie

s Re

sear

ch C

entre

»Bu

dget

of A

lbio

n Fi

sher

ies

Rese

arch

Ce

ntre

to d

oubl

e by

20

20

MoO

cean

Ec

onom

yGo

vern

men

t bu

dget

Incr

ease

inve

stm

ent i

n R&

D in

frast

ruct

ure

and

prog

ram

mes

for a

gro-

proc

essi

ng.

»R

EFER

TO

THE

AGRO

PRO

CESS

ING

SECT

OR

OPE

RAT

ION

AL O

BJEC

TIVE

3.

2.

2M

inis

try o

f Ag

ro In

dust

ry

and

Food

Se

curit

y

FARE

I, M

RC, U

oM,

UoT

Gove

rnm

ent

budg

et,

priv

ate

sect

or

cont

ribut

ion

Incr

ease

offi

cial

bud

get a

lloca

tions

to R

&D

prog

ress

ivel

y to

reac

h 0.

5 %

of G

DP b

y 20

20 ( f

rom

a c

urre

nt e

stim

ate

of 0

.18

% )

2 »Bu

dget

allo

catio

ns

to R

&D

reac

h 0.

5 pe

rcen

t of G

DP b

y 20

20

Min

istry

of

Fina

nce

and

Econ

omic

De

velo

pmen

t

MTC

I, M

inis

try o

f Ed

ucat

ion,

MRC

Gove

rnm

ent

budg

et

Set u

p a

form

al re

sear

ch c

lust

er to

stre

ngth

en li

nkag

es b

etwe

en e

xist

ing

rese

arch

cen

tres

and

rela

ted

inst

itutio

ns ( e

.g. C

BBR,

Mau

ritiu

s Oc

eano

grap

hic

Inst

itute

, IP

Offic

e, M

RC, M

CIA,

FAR

EI ) a

nd to

sup

port

the

dem

and-

driv

en R

&D

gear

ed to

ward

s de

velo

pmen

t of i

nnov

ativ

e an

d co

mm

erci

ally

via

ble

mat

eria

ls

and

prod

ucts

in p

riorit

y su

bsec

tors

( e.g

. bio

tech

nolo

gy fo

r fis

herie

s an

d so

ftwar

e de

velo

pmen

t for

fina

ncia

l ser

vice

s/ m

edic

al d

evic

es/ t

extil

e in

dust

ry )

3Re

sear

ch

orga

nisa

tions

&

ent

erpr

ises

»Fo

rmal

ise

the

rese

arch

clu

ster

by

2018

.

MRC

Min

istry

of I

ndus

try/

MCC

IBu

dget

ary

mea

sure

s

Activ

ities

1.2

.1, 1

.2.2

, and

1.2

.3 a

lso

cont

ribut

e to

this

ope

ratio

nal o

bjec

tive.

30 MAURITIUS NATIONAL EXPORT STRATEGY – INNOVATION CROSS-SECTOR • 2017 – 2021

ANNEX 1. INNOVATION AND COMMERCIALIZATION SCHEMES RELEVANT TO FIRMS, MAURITIUS

Innovation and commercialization schemes

Scheme Objective Institutions Beneficiaries Details

Private Sector Collaborative Research Grant Scheme ( PSCRGS )

MRC Firms, research centres

Projects < one year, three phasesI : Feasibility ( < MUR 0.5M )II : Concept ( < MUR 1.25M )III : Commercialization ( <MUR 2.5M )

Collaborative Research and Innovation Grant Scheme ( CRIGS )

Promote collaborative research RDWG, MRC, JEC, MTCI

All firms, and university & research institutions

Ongoing callUp to MUR 5M for two yearsPriority sectors : renewable energy ; ocean/marine ; ICT/BPO/Telecom., life sciences ( health, medical & pharma ) ; manufacturing

Business Angels Forum Support Scheme

Organize Business Angel Forums to bridge research-industry gap, present innovative ideas, encourage in-house innovation

MRC Any institution Annual callGrant of MUR 25,000 Set up in 2010

Intellectual Property Promotion Scheme ( IPPS )

Support applications for patents and registration of industrial designs

MRC, IPO Any Mauritian firm, organization or individual

Up to 50 % of registration fees ( patents /industrial design ).Open call, first-come-first-served basis, subject to availability of funds ( i.e. MUR 100,000/year )

Research Industry Linkage Award ( RILA )

Support collaborative research industry academic experiences ( MSc Taught Programmes ) of relevance to external business partners based in Mauritius

MRC, MoTESRT Foreign business and public organizations with base in Mauritius

Grant to study full-time MSc taught programme, dissertation linked to industry issue. Annual callPriority sectors : ICT, green tech., health/ bioscience, engineering, financial, legal & management services.

SME Innovation Grant Scheme ( SIGS )

Proposals for innovative and environment friendly alternatives to plastic bags

RDWG, MRC, JEC, MoFED

SMEs with annual turnover under MUR 50M

A grant of up to MUR 1,000,000Closed

Biotechnology Research and Innovation Grant ( BRIG )

Collaborative research and development projects with commercial potential in the field of biotechnology

RDWG, MRC, BM, MTCI

Firms ; consortium of firms, academia, can include overseas partners

Matching grant of up to MUR 5M per project not exceeding 24 monthsPriority sectors : medical ; sustainable agriculture, biofarming & food security ; industrial, environment & energy ; marine.

RDWG : Research and Development Working Group, MRC : Mauritius Research Council, MoTCI : Ministry of Technology, Communication and Innovation, JEC : Joint Economic Council, IPO : Industrial Property Office

MoTESRT : Ministry of Tertiary Education, Science, Research and Technology

Source : based on information from Mauritius Research Council http ://www.mrc.org.mu/funding_schemes

31REFERENCES

REFERENCES

Edquist C ( 2005 ). Systems of innovation. Perspectives and Challenges. In : Fagerberg J,, In : Mowery D C, and In : Nelson R R, eds. The Oxford Handbook of Innovation.

Iizuka M, Mawoko P and Gault F ( 2015 ). Innovation for Development in Southern & Eastern Africa Challenges for Promoting ST&I Policy. Policy Brief.

Kuhlmann S and Arnold E ( 2001 ). RCN in the Norwegian Research and Innovation System. Fraunhofer ISI.

MCCI ( 2016 ). Innovate, Invest, Internationalise. The Mauritius Chamber of Commerce and Industry. January.

Meier zu Köcker G, Jhurry D and Bhaw-Luximon A ( 2015 ). Mauritius. Summarising Report on the Determinants of the Mauritian Innovation System.

Porter M ( 1998 ). On Competition. Harvard Business School Press. Boston.

Ravetz J ( 2013 ). Mauritius National Research Foresight Exercise. Prospectus & summary report. May.

Suddhoo A ( 2016 ). Communication. Re : National Export Strategy - Innovation and R&D February.

UNCTAD ( 2011 ). Science, Technology and Innovation Policy Review of El Salvador.

UNCTAD ( 2013 ). Investing in innovation for develop-ment. Note by the UNCTAD secretariat. TD/B/C.II/21 February. Available at http ://unctad.org/en/pages/PublicationArchive.aspx?publicationid=1445.

UNCTAD ( 2015 ). Policies to promote collaboration in sci-ence, technology and innovation for development : The role of science, technology and innovation parks. A note by the Secretariat. TD/B/C.II/30 February.

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Republic of Mauritius


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